Super Bowl Office Pools: Teambuilding or Illegal Gambling?

by Steve Bruce

Super Bowl time! Who do you have in the pool? Only a few more hours to get in! Office betting pools sound like good, clean American fun, but are they actually illegal gambling? Experts say yes.

With Super Bowl XLII this Sunday and March Madness right around the corner, it's a busy time for the sports-minded employees who organize "friendly" betting pools.

And what’s wrong with that, many ask? "Sports are a huge part of American culture and can bring fun and camaraderie to the workplace," says Laura Raimes, blogging on ajcjobs.com.

Unfortunately, those pools probably violate your work rules if you have a gambling policy (we'll cover that in tomorrow's Advisor) and are very likely unlawful under state statutes. So how do you handle this seemingly innocent bit of fun?

Illegal Pools

For the legal perspective, Raines quotes Atlanta attorney John Monroe from Ford & Harrison: "From a legal standpoint, companies should prohibit and not allow gambling to occur because it's a misdemeanor [in Georgia]," Monroe says.

If you have a gambling policy on your books, he says, don't ignore it. If you don't enforce it, employees may then argue that your company is selective in which policies it enforces. And that spells legal problems down the road in trying to enforce any policy.

Practically speaking, though, Monroe admits that many companies do have informal pools. He advises employers to keep the pools infrequent, small, and with small winnings. A few people putting in a dollar to bet on football’s “Big Game” or the U.S. Open is one thing, he says; 25 people betting $100 each on every sports event that comes along is quite another.

Beyond Illegality

Illegality might be the strongest reason for a gambling policy, but it's not the only one. Consider the following issues advanced by Raines:

Lost productivity. Some experts have estimated productivity losses in the billions of dollars as a result of time lost participating in betting pools.

Pressure to participate. Pool pressure can be a problem for employees who do not wish to participate or who are financially unable to.

Offer Alternatives

So that HR people who ban gambling pools don't seem like curmudgeons, Raines offers several alternatives:

Take employees to an event, like a local ball game, instead of betting on it.

Let employees plan events that could range from trips to places of interest to ice skating or bowling nights.

Organize intramural team sports.

Get creative. At Blue Cross/Blue shield, workers organized "Whatyoudo?" — an annual event at which employees show off their hobbies and crafts.

Most Popular Office Betting Subjects

What are the most popular betting pool topics after sports? The topics can get both strange and personal. Some surveys have shown that among the most popular are:

When Susie will have her baby, and its gender, weight, etc.

When Bill will get fired.

How long Jack and Jill's marriage will last.

What should gambling policies cover and how should they be worded?

Here are the questions to ask yourself when writing or revising such a policy, taken from BLR's practical tool, 75 Must-Have HR Policies, on CD.

Legal/Illegal gambling. Is all gambling prohibited in your workplace, or just illegal gambling?

Gambling paraphernalia. Are items associated with gambling prohibited? A deck of cards, for example? Handheld video poker games? Dice?

Facilities. Can company facilities be used to place a lawful bet? Or to buy a lottery ticket from the state?

Entertainment. Can sales personnel entertain clients by taking them to lawful gambling events?

Search. Do you reserve the right to search/inspect employees' desks, lockers, belongings, vehicles, etc., when investigating a violation of this policy?

Discipline. What discipline can be imposed if the policy is violated?

Legal Points to Consider

Criminal. Most states have laws that make private gambling a crime.

Licenses. Many businesses may lose a license. For example, a restaurant or hotel may lose a liquor license if management allows gambling on the premises.

Advertisements. Games, contests, drawings, and other advertising devices can be illegal lotteries.

Discrimination. Although gambling addiction is not specifically covered by the Americans with Disabilities Act, state law may protect someone with this problem if it meets the law’s definition of how a disability affects major life activities.

Off-duty conduct. A number of states protect employees from being discharged for lawful actions, such as gambling, that they engage in off-duty.

Don't Forget These Key Considerations

Employee morale. Consider your definition of gambling. If you outlaw the popular football pool, you may create not only morale problems, but discipline problems as well. Managers who see such activity as “innocent fun” may be reluctant to discipline employees caught participating in a football pool.

Enforcement. Who will enforce the policy? Your managers? Or will you look for violations? Will you act only when violations are reported?

Workplace lottery pools. Do employees violate your policy when they pool their money to buy lawfully conducted state lottery tickets

The Easier Path to Policy Creation

Creating a policy that covers all these points is no matter to be taken lightly.

The reason is that a policy is a legal document of your business, and therefore must be drafted and reviewed with the same care as a law. You need to research all aspects of the topic, then discuss your findings with all concerned. The policy will then most likely need to be revised, and reviewed again, perhaps by several levels of management.

Finally, the policy will need a legal review to ensure it meets both federal and state standards. Does the policy violate any safety regs? Does it ensure equal opportunity? Will it reasonably accommodate those with special needs? These are the questions your lawyers, and if you’re not careful, government agencies, will ask.