{"id":1117,"date":"2016-09-08T12:15:34","date_gmt":"2016-09-08T16:15:34","guid":{"rendered":"http:\/\/employerdefensereport.com\/?p=1117"},"modified":"2026-03-20T11:42:05","modified_gmt":"2026-03-20T15:42:05","slug":"nfl-employers-and-the-office-fantasy-pool-gambling-in-the-workplace","status":"publish","type":"post","link":"https:\/\/www.connmaciel.com\/employer-defense-report\/nfl-employers-and-the-office-fantasy-pool-gambling-in-the-workplace\/","title":{"rendered":"NFL, Employers, and the Office Fantasy Pool – Gambling in the Workplace"},"content":{"rendered":"

With the start of a new\"trophy-clipart-free-trophy_golden\" NFL football season around the corner, many employers are likely hearing chatter around the workplace about the upcoming season, predictions, and office football leagues.\u00a0 Office betting pools can have both a positive and negative impact on the workplace.\u00a0 While most employees view betting pools as typical office fun, employers often suffer the consequences, such as a drain on productivity and resources as well as the legal issues that go with employees gambling at work. However, employers can take certain steps to ensure that gambling in the workplace does not violate state law, impact productivity, or result in multiple HR complaints while maintaining high employee morale.<\/p>\n

Fantasy Football and Office Betting Pools<\/strong><\/p>\n

Office betting pools and online gambling have become commonplace in everyday society and many employers themselves probably participate in fantasy leagues.\u00a0 Both the fall and spring bring new excitement to the office as employees get to revel in what seems to have become somewhat of a sacred tradition \u2013 NFL Fantasy Football and NCAA March Madness.<\/p>\n

The amount of money that Americans spend during these two times of the year is shocking.\u00a0 According to the Fantasy Sports Trade Association<\/a>, roughly 57.4 million people will participate in fantasy sports leagues this year, with an estimated spending of $556 per user.\u00a0 That amounts to about $31.9 billion in gambling on fantasy sports.\u00a0 The fantasy sports fever that continues to sweep the country cannot be understated.\u00a0 Within the past decade, the number of people gambling on fantasy sports and their spending habits have more than tripled.\u00a0 During March Madness alone, NCAA tournament bracket pools cause Americans to pour approximately $3 billion into online bracket pools, and that doesn\u2019t even count the numerous contests put on by employers that do not require an entry fee or contests among friends and co-workers. \u00a0Ultimately, sports betting is a multi-billion-dollar industry, and it is everywhere.\u00a0 But what does this mean for employers?<\/p>\n

Productivity and the Workplace Environment <\/strong><\/p>\n

Office betting pools and the aura of fantasy football can boost employee morale but employers need to make sure that productivity is not significantly impacted as a result.\u00a0 In a 2011 Vault survey<\/a>, 71.5% of respondents said that they participated in a betting pool in the workplace, and 56% of respondents said they spent 30 minutes or less discussing, researching, or making picks for an office betting pool. However, approximately 22% of respondents admitted to spending considerably more time on office gambling \u2014 4% spent 1-2 hours, 2% spent 2-4 hours, and 1% spent more than 6 hours.<\/p>\n

With a majority of your employees participating in some type of betting pool in the workplace at some point throughout the year and spending what could amount to a sizeable amount of loss of productivity, employers need to weigh the costs and benefits of allowing betting pools and time for employees to play fantasy sports.\u00a0 According to consulting firm Challenger, Gray & Christmas, Inc., fantasy sports will cost employers approximately $16.8 billion this year.\u00a0 In coming up with this figure, Challenger estimated that fantasy players spend approximately one hour of work time per week over the course of 17 weeks during football season updating their rosters, researching players, or discussing fantasy football with colleagues at work.<\/p>\n

While this number may seem high, Challenger states that the loss of productivity is negligible compared to the comradery and team building that can stem from the office fantasy league. \u00a0Although an employer\u2019s loss in productivity may seem like a large amount of money, \u201cit is really just a drop in the bucket\u201d that does not have a major impact on an employer\u2019s bottom line.\u00a0 If done in moderation, the time employees spend participating in office pools or playing fantasy football at work can foster a more enjoyable workplace.\u00a0 Approximately 64% of respondents to the 2011 Vault survey stated that office betting pools have a positive influence on the work environment.\u00a0 In contrast, only 8% claimed that it had a negative impact on the work environment.\u00a0 Challenger also reported that fantasy football can help keep employee morale high and limit employee turnover \u2013 both of which have a significant impact on an employer\u2019s annual profits.<\/p>\n

Office Pools and the Law<\/strong><\/p>\n

Productivity and morale concerns aside, employers need to consider whether office betting pools are legal. \u00a0There are several laws restricting gambling, such as the Interstate Wire Act of 1961, the Professional and Amateur Sports Protection Act (\u201cPASPA\u201d), and the Unlawful Internet Gambling Enforcement Act (\u201cUIGEA\u201d).\u00a0 While these laws prohibit or limit sport gambling to some degree, when read together, they have only complicated questions regarding online sports gambling and small-time office betting pools.<\/p>\n

The Interstate Wire Act of 1961 prohibits any telecommunicated wagers in interstate or foreign commerce placed or received by a person located in the United States on \u201cany sporting event or contest.\u201d 18 U.S.C. \u00a7 1804. \u00a0While this may not seem to apply at first glance, employers with offices and employees in different states should refrain from sponsoring pay-to-play fantasy football leagues. \u00a0Congress further complicated the gambling laws in 1992 when it enacted PASPA \u2013making it illegal for any private person to operate, advertise, or promote a wagering scheme based on a competitive game in which \u201cprofessional or amateur athletes participate.\u201d\u00a0 This broadly worded statute, however, grandfathered previously authorized sports gambling in Nevada, Delaware, Oregon and Montana.<\/p>\n

Finally, the UIEGA states that \u201cno person engaged in the business of betting or wagering may knowingly accept\u201d funds \u201cin connection with the participation of another person in unlawful Internet gambling.\u201d\u00a0 However, the UIGEA has an exception that permit fantasy sports if: (1) the value of the prizes is not determined by the number of participants or the amount of fees paid and the prize is made known to participants before the contest begins; (2) all winning outcomes reflect the relative knowledge and skill of the participants and are determined predominantly by accumulated statistical results of the performance of individual athletes in multiple real-world sporting or other events; and, (3) the fantasy game\u2019s result is not based on final scores or point-spread of any single real-world game and not solely on any single athletes\u2019 performance in a single event. \u00a0Office\u00a0pools where points are accumulated based on an athlete\u2019s individual performance and the total points accumulated by an individual\u2019s fantasy team would not satisfy this exception if employers host a league in which the reward is based on employee\u2019s entry fees.<\/p>\n

In addition to the federal laws regulating sports gambling, there are a number of different state laws that restrict, hinder, or prohibit workplace gambling to some degree.\u00a0 Determining if workplace gambling is illegal on the state level typically depends on the nature of the gambling \u2013 i.e. the specific format of the game and whether it is based on skill or chance \u2013 and the specific state in question.\u00a0 In many states, gambling in the workplace between colleagues is illegal. \u00a0For example, in Wisconsin and South Carolina, gambling is considered a crime. \u00a0Section 945.02 of the Wisconsin statutes states that gambling includes, but is not limited to, making a bet.\u00a0 A \u201cbet\u201d is defined as a \u201cbargain 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.\u201d<\/p>\n

In contrast, in other states, gambling at work resides in very gray legal area. \u00a0In Colorado, for example,\u00a0most gambling is illegal but betting pools in the office are an exception to the definition of illegal gambling so long as the pool is \u201cincidental to a bona fide social relationship.\u201d\u00a0 Other states such as Virginia have similar social gambling exceptions but it is unclear whether this would apply to the office betting pool.\u00a0 Employers would be wise to look into their respective state gambling laws before blessing any office betting pool.<\/p>\n

Conclusion<\/strong><\/p>\n

Ultimately, the proliferation of online betting and illegal gambling dwarfs the small office betting pools, and it is unlikely that employers or employees would face any trouble with the law.\u00a0 While it is not categorically illegal for employers to host a fantasy sports contest in the office, they should be very careful in doing so especially when money is involved.\u00a0 Employers shouldn\u2019t host a fantasy football league in which employees must pay-to-play.\u00a0 Employers can, however, host office leagues at no cost to employees and provide their own prizes for the winners to help promote friendly competition in the workplace.<\/p>\n

If employees independently run office pools, the employer should consider implementing a company gambling policy that:<\/p>\n

    \n
  1. Describes what type of gambling is allowed in the office if it is not strictly prohibited.<\/li>\n
  2. Prohibits gambling amongst employees in offices or work sites located in different states.<\/li>\n
  3. Defines parameters for using company property, such as email, computers, and printers, to engage in gambling activities.<\/li>\n
  4. Reminds employees that they must comply with both federal and state laws.<\/li>\n
  5. Requires the approval of Human Resources if employees wish to host their own office betting pool to ensure that it complies with the employer\u2019s gambling policy and state and federal law.<\/li>\n
  6. Clearly tells employees that the activities cannot interfere with productive work time or disrupt other employees in the workplace.<\/li>\n
  7. Explains the discipline that applies to violations of the gambling policy.<\/li>\n<\/ol>\n

    The legality of fantasy sports betting is quickly changing as it becomes more and more common, and it is a rather gray area for employers at the moment.\u00a0 However, employers should promote an environment where both the employer and employees strive to satisfy the law\u2019s requirements while enjoying the NFL season with\u00a0colleagues.<\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    With the start of a new NFL football season around the corner, many employers are likely hearing chatter around the workplace about the upcoming season, predictions, and office football leagues.\u00a0 Office betting pools can have both a…<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[11],"tags":[878,826],"class_list":["post-1117","post","type-post","status-publish","format-standard","hentry","category-state-local-trends","tag-local-ordinances-jurisdictional-rules","tag-policy-handbooks"],"acf":[],"yoast_head":"\nNFL, Employers, and the Office Fantasy Pool - Gambling in the Workplace - Employer Defense Report<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.connmaciel.com\/employer-defense-report\/nfl-employers-and-the-office-fantasy-pool-gambling-in-the-workplace\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NFL, Employers, and the Office Fantasy Pool - Gambling in the Workplace - Employer Defense Report\" \/>\n<meta property=\"og:description\" content=\"With the start of a new NFL football season around the corner, many employers are likely hearing chatter around the workplace about the upcoming season, predictions, and office football leagues.\u00a0 Office betting pools can have both a…\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.connmaciel.com\/employer-defense-report\/nfl-employers-and-the-office-fantasy-pool-gambling-in-the-workplace\/\" \/>\n<meta property=\"og:site_name\" content=\"Employer Defense Report\" \/>\n<meta property=\"article:published_time\" content=\"2016-09-08T16:15:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-20T15:42:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.connmaciel.com\/employer-defense-report\/wp-content\/uploads\/sites\/2\/2016\/09\/trophy-clipart-free-trophy_golden-scaled.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1921\" \/>\n\t<meta property=\"og:image:height\" content=\"2560\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Daniel C. 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