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Each year, March Madness promises three weeks of excitement and hoopla for fans of college basketball. For the nation's employers, the annual tourney brings with it an estimated $1.2 billion in lost office productivity, according to a survey by Challenger, Gray & Christmas Inc. Employees across the nation will not only follow games on television or online, but also participate by wagering in office pools. While most human resources managers may not consider this form of gambling to be a problem in the workplace, it nevertheless poses a number of legal concerns and risks.
First of all, though these popular office pools may build camaraderie among colleagues, they are illegal under Illinois law. The state's gambling statute, as codified in 720 ILCS 5/28 et seq., sets forth in Section 28-1 that a person commits gambling when he or she:
(1) Plays a game of chance or skill for money or other thing of value, unless
excepted in subsection (b) of this Section; or…
(6) Sells pools upon the result of any game or contest of skill or chance,
political nomination, appointment or election…
Gambling under subsection (6) is punishable as a Class A misdemeanor, with a subsequent conviction being punishable as a Class 4 felony.
Furthermore, the employees participating in an office pool are not the only ones vulnerable to prosecution under Illinois law. Employers who knowingly permit gambling in the workplace may be subject to prosecution under section 28-3 (Keeping a Gambling Place), which states the following:
A "gambling place" is any real estate, vehicle, boat or any other property whatsoever used for the purposes of gambling other than gambling conducted in the manner authorized by the Riverboat Gambling Act. Any person who knowingly permits any premises or property owned by him or under his control to be used as a gambling place commits a Class A misdemeanor.
Another area of concern involves the subject of unfair labor practices. By allowing employees to solicit bets from each other, an employer may relinquish the right to object to other solicitation activities, such as union organizing.
Protect Yourself with a Formal Policy
In order to combat a potential lapse in office productivity, as well as minimize the risk of prosecution related to office pools, an employer may choose to draft a formal policy that includes the following:
- A clear definition of gambling
- Emphasis on the illegality of gambling
- A statement expressing the negative impact that gambling can have on employee productivity
- Integration of the gambling policy with the company's progressive disciplinary program
Such a policy should always be enforced consistently and evenhandedly.
Ultimately, the odds of criminal prosecution based on an office pool may be low. After all, most law enforcement officials have more on their minds than $5 bets during March Madness. However, if an employer wants to minimize the specter of legal liability, it may be wise to include gambling on the company's list of prohibited workplace conduct.
© 2010 Much Shelist Denenberg Ament & Rubenstein, P.C.
