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Office betting pools: Dive in at your own risk

By: dmc-admin//March 17, 2008//

Office betting pools: Dive in at your own risk

By: dmc-admin//March 17, 2008//

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Let’s lay it on the table from the start — office betting pools are illegal in Wisconsin.

Regardless of the amount of money involved. Regardless of how many other people participate in betting pools. Office betting pools and other forms of private gambling can lead to fines or even jail time.

Every year around this time, with NCAA March Madness right around the corner, I advise my clients on the illegality of office gambling. They nod and smile politely, seeming to listen … but I suspect they’re not really paying me any mind. They’re too busy thinking about whether Wisconsin can make the Final Four, whether UNC could be upset in an early round, whether they should choose Memphis over UCLA to take it all, etc.

Fools. Of course UNC will be upset in an early round, and clearly my beloved Duke Blue Devils are in the best position to take it all this year.

But I Digress.

“March Madness” office pools are hardly uncommon. One 2006 poll found that 21 percent of individuals have participated in a March Madness office betting pool. Bracket forms are printed in newspapers, and instructions for organizing and conducting such office pools are downloadable from the Internet. While most office pools involve small amounts of money, it can add up. According to the FBI, an estimated $2.5 billion is bet every year on the NCAA basketball tournament.

Under current Wisconsin law, anyone who “makes a bet” is guilty of a Class B misdemeanor, punishable by a fine of up to $1,000 and/or imprisonment for up to 90 days. The law defines a “bet” as a “bargain in which the parties agree that, dependent upon chance even though accompanied by some skill, one stands to win or lose something of value specified in the agreement.” Wis. Stats. Sec. 945.01(1). To give a plain example, despite the unquestionable skills of Duke’s senior guard DeMarcus Nelson, not to mention Greg Paulus, Jon Scheyer, Kyle Singler, etc., there is a remote chance the Blue Devils will not dominate the tournament. Therefore, wagering on Duke’s eventual victory would constitute an unlawful “making of a bet.”

Sometimes clients ask me what are the odds that the police would actually make an arrest based on an office betting pool. I don’t know. I admit I have never known anyone who has been arrested or otherwise gotten in criminal trouble over office betting pools.

But there are other risks employers should consider besides just the risk of criminal prosecution. For example:

Betting pools can significantly reduce employee productivity. Chicago-based outplacement consultants Challenger Gray & Christmas estimates that US businesses suffer an estimated $1.2 billion in lost productivity during March Madness, between office pool and Internet activity.

Betting pools often involve non-work-related use of company computer systems and office equipment. Your company policies likely prohibit or at least restrict personal use of copiers, or your email system. If employees are allowed to use company copiers to make photocopies of bracket forms, or use the company email system to update on tournament results or the like, the employer may find it more complicated to enforce these policies in other contexts.

Gambling can be addictive and a serious problem for many. According to the Wisconsin Council on Problem Gambling, an estimated 5 to 7 percent of the US population has some kind of gambling problem — and the organization receives a high number of referrals in March. The Wisconsin Policy Research Institute has estimated that serious problem gamblers contribute to $370 million in social costs each year, including employment costs.

These reasons, and the prevalence of office betting pools, should be enough reason for employers to remind employees that there are no exceptions to their HR policies for office betting pools. Employees should be reminded that gambling on basketball is illegal. That company copy machines are not to be used to photocopy bracket forms. That listening to or watching games during work time is inappropriate. That using company email to mock UNC fans — while perhaps understandable — is not an allowed use of the company’s computer system.

Of course, it is probably not necessary to prohibit all basketball fan activities. Many employers find it to be good for employee morale to allow employees to display support for the Blue Devils (or other sports teams of their choice). I know some companies that broadcast Duke basketball games over the PA system (or other significant games as well). And I have heard of employers who offer to throw parties if when Duke is ultimately victorious. Of course, I have also heard there are deviants who celebrate if the Blue Devils lose — but such antisocial practices hardly deserve mention. The point is, there are many creative ways for employers to tap into the excitement of March Madness without running afoul of the law.

Go Duke!

Special thanks to Laurie Meyer, Esq. for her research on this topic. Although not a Duke basketball fan, she’s all right.

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