Government Charge Card Reforms Demanded After Massive Gambling Spending Exposed | 10BET
Federal Lawmakers Demand Reforms to Government Charge Cards Following Exposure of Excessive Gambling Spending
- Sen. Joni Ernst and Rep. James Comer want a probe into government spending
- Ernst and Comer are concerned about federal government charge cards
- Card records show transactions at casino ATMs and strip clubs
Two Republican federal lawmakers — Sen. Joni Ernst (R-Iowa) and Rep. James Comer (R-Kentucky) — are calling for a thorough review by the Comptroller General Gene Dodaro’s office into the management of government charge cards. Their request stems from alarming findings by the Department of Government Efficiency (DOGE), which revealed that government charges were made at high-risk merchants such as strip clubs and online gaming platforms. Most concerning to the lawmakers is the discovery of taxpayer-funded gambling spending, specifically through transactions made at casino ATMs, which they argue warrants immediate investigation.
In February, DOGE reported that the number of active federal government credit and debit cards exceeds the number of federal employees. A staggering 4.6 million active cards were used for around 90 million unique transactions in the previous fiscal year, amounting to expenditures of approximately $40 billion.
Ernst and Comer, especially Comer, who chairs the House Committee on Oversight and Government Reform, have expressed their concerns over the glaring lack of oversight concerning these expenditures.
Audit Needed
In correspondence dated May 16, the two lawmakers stressed the need for an urgent audit of the charge card system to identify systemic risks, remove inefficiencies, and restore accountability. They have suggested that the Government Accountability Office conduct a comprehensive evaluation of the issuance and management of all types of government purchase and charge cards.
During their review, they referenced an audit carried out by the Department of Defense (DoD) Office of Inspector General (OIG), which found that over 15,610 transactions occurred at known high-risk locations, including casino ATMs, bars, and strip clubs.
“We are doubtful that these charges were incurred for legitimate purposes or relevant to the Department of Defense’s official operations,” the lawmakers commented.
“It is unacceptable for DoD officials to waste taxpayer euros at clubs and casinos, particularly during events like Super Bowl Sunday, St. Patrick’s Day, and on federal holidays,” Ernst remarked. “With the nation deep in debt at $36 trillion, we cannot afford bureaucrats racking up charges and burdening taxpayers with the expense.”
Other types of high-risk merchant transactions included spending in online gaming platforms, amusement parks, and even transactions connected to sports betting and cannabis products.
Military Gambling Spending
In another report, Casino.org highlighted that military personnel had used federal charge cards for gambling, covering expenses related to casinos and online sportsbooks. The audit conducted by the DoD found that military credit cards had been used for more than $500K in expenses linked to gambling activities.
The disclosure showed that one military member withdrew almost $11K during a visit to MGM National Harbor in Maryland, with 21 separate ATM transactions carried out during this visit. It’s worth noting that ATMs located within casinos tend to impose some of the highest transaction fees.
“This isn’t the first audit done by the DoD OIG. Concerns over abuse and fraud have persisted due to inadequate implementation of existing regulations and systems designed to detect misuse of government travel cards,” Ernst and Comer concluded.
Key Statistics:
- 4.6 million active federal government credit and debit cards.
- Approximately 90 million unique transactions reported in the last fiscal year.
- Spending reached around $40 billion.
- 15,610 transactions occurred at known high-risk establishments.
This situation highlights the urgent requirement for increased oversight and reforms to ensure taxpayer funds are appropriately managed. The comprehensive review requested by Ernst and Comer could pave the way for necessary changes in the usage of government charge cards.
In summary, federal lawmakers are taking significant steps toward ensuring better management of government-issued charge cards. By opening an investigation into how these cards are used, particularly in high-risk areas like casinos, they aim to promote accountability and restore the public’s trust in government spending practices.
