California Bans Collecting Welfare at Strip Club ATMs State debit cards no longer work ithere By Rob Quinn, Newser Staff Posted Jul 1, 2010 4:00 AM CDT 20 comments Comments Some 17 strip clubs appeared on a list of places where welfare recipients could withdraw benefits. (Getty Images) (Newser) – Californian authorities learning that thousands of taxpayer dollars meant for needy families may have ended up being stuffed into thongs have banned collecting welfare at strip clubs. The establishments have been scratched from the official list of places where welfare recipients can use state-issued ATM cards to withdraw cash, the Los Angeles Times reports. Over $12,000 from the Temporary Assistance for Needy Families program has been withdrawn from ATMs at several strip clubs, say officials, who promise to "apply some common sense to the list of outlets where cash assistance should not be withdrawn." The department pulled casinos from the approved list last week after learning that nearly $2 million in welfare benefits had been withdrawn from casino ATMs over the last year.