A recent report that found federal employees improperly used government credit cards at casinos could have unnecessary consequences for the gaming industry, the American Gaming Association warned today.

In a May 19 report, the Department of Defense Inspector General’s Office said it discovered hundreds of thousands of dollars in transactions where department card holders probably used their cards at gambling halls and “adult entertainment establishments” for personal purposes.

The report made several recommendations, including that the government consider blocking cards from being used at specific casinos or adult entertainment businesses. The gaming association is taking issue with that recommendation.

Geoff Freeman, president of the gaming association, wrote in a letter to Defense Department officials today that while his group agrees “wholeheartedly” that government workers should be responsible with their card usage, it is “troubled” by recommendations of a ban on credit cards at casinos.

“A policy that prohibits the use of government credit cards would reflect a gross misunderstanding of casinos, which consist of much more than the gaming floor itself, and would ignore the many legitimate business-related expenses incurred at gaming facilities,” Freeman wrote.

As a side note, there has been much talk recently of having cashless gaming. Casinos are one of the few businesses that are so dependent of customers having cash to play games. Not that it would have helped in this situation, but now you know what’s coming. This story on the improper use of government credit cards at gambling halls and casinos originally appeared on the Vegas Inc website.