Hel-lo, the issuer needs to be smarter than the card. They could just issue those cards with limitations coded into the mag stripe that would only allow them to be used for food purchases at grocery stores. No cash back from purchases or cash withdrawls. Just like getting a prepaid QuickTrip card - you can only use it at QT for gas or purhases.
They have essentially been handing them cash. It’s idiotic.
They can go to any ATM machine and then go to the casino.
The casino can just install an ATM across the street.
These new rules will change nothing.
That’s why welfare programs never gave out cash in the past.