Many organizations have misconduct policies highlighting gambling is prohibited in the workplace. However, most employees view office pools and other office gambling as harmless.  Bottom line: employers usually experience decreased productivity

According to the 2018 Office Betting Survey by Vault.com:

  • 70% of respondents participate in an office betting pool
  • 81% of respondents knew of a coworker who did
  • 79% of respondents believed it was appropriate to engage in such behavior in the workplace and during work hours.
  • 69% of respondents admitted to filling out an NCAA basketball tournament bracket
  • 60% of respondents betted on the Super Bowl.
  • 17% of respondents betted on a coworker’s pregnancy
  • 8% betted on awards shows i.e.Grammy’s & Academy Awards
  • 4% betted on contestant shows like American Idol.

Does March Madness office pools count as gambling?

Gambling is prohibited by three federal laws—The Professional and Amateur Sports Protection Act of 1992, the Interstate Wire Act of 1961, and the Unlawful Internet Gambling Act of 2006—which outlaw betting on professional or amateur sports (with exceptions for a few states) and using the Internet for interstate wagers and unlawful gambling. Furthermore, many states have laws that prohibit betting, including office pools. If office betting is illegal in your state (or you don’t want employees participating in office pools), you should clearly communicate through a formal written company policy that any kind of betting is not acceptable at work or on company time or property. Furthermore, the policy should make it clear that office betting isn’t sponsored, organized, or approved by the company. The company policy regarding gambling should define gambling, that gambling is illegal (if it is in your state) and that it can cause problems for employee performance and productivity. The consequences of this policy violation should be clearly explained and violations of the policy could constitute discipline.

According to Shari Lau (3/1/2018) “While you can block any tournament-related activities during work time, and for some jobs you should, a better bet might be to allow employees to choose how they use their time as long as they get their work done. Some ideas for making it through the March Madness include the following: Set up a company-sanctioned pool with no entry fees (thus, no gambling). The winner could receive a prize from the employer, such as a gift card, movie tickets or an extra vacation day. Or the employer could donate to a charity of the winner’s choice. Even those not interested in basketball might join in the fun. If you choose to allow an office pool, insist that employees use paper rather than an online system. Don’t allow interstate pools. Designate approved zones for watching the games, perhaps providing a TV. Ensure that employees who aren’t interested in the games have a quiet area to take their breaks. Remind employees of the company’s anti-harassment policy. Some workers may object to gambling for religious reasons, and they should not be pressured to participate.

Organizations should be consistent and fair in the enforcement of all policies including gambling. If employees spend hours at work watching March Madness streaming on the organizations’ computer does that also violate other policies? Obviously, spending work time on such activities may lead to performance and productivity concerns.

Employers that have gambling policies but do not enforce them leads to employee’s believing that the company condones the activity regardless of the stated policy. Be clear what the company expectations are regarding office pools and gambling and be consistent with the consequences.

Reference: Lessner, J. (3/4/2016). March Madness or clean fun? Wisconsin Employment Law Letter.

Lau, S. (3/1/2018) Gambling Gambit, SHRM.org