Geoff Freeman, president and chief executive of the American Gaming Association, recently called proposed restrictions on the use of Defense Department credit cards in casinos the latest misperception of the casino industry and an overreaction to an audit that found more than 2,258 in improper charges by department personnel. Inspectors also stated ,576 was spent in “adult entertainment establishments.”
In a letter to Defense Department Inspector General Jon Rymer and Harvey Martin, director of the Defense Travel Management Office, Freeman wrote, “A blanket ban on the use of government credit cards at casinos would have significant negative unintended consequences. A policy that prohibits the use of government credit cards at casinos would reflect a gross misunderstanding of casinos, which consist of much more than the gaming floor itself,” Freeman wrote. He compared the proposal to an informal blacklisting of resort cities like Las Vegas or Orlando for government conferences, even when it might be less expensive and more efficient to meet there.
The Defense Department auditors found a total of $3.26 million was spent at casinos and adult clubs in the year ended June 30, 2014. The audit outlined potential abuses of Pentagon-issued travel cards, including using the credit cards to withdraw money from casino ATMs in amounts that exceeded per diem.
Besides an across-the-board ban on using the cards at casinos, the inspector general suggested the Pentagon use software to better identify problem transactions. Another recommendation was to consider blocking card use at specific casinos.
