Each year millions of Americans bet on brackets and join pools with coworkers and friends. But don’t be fooled – your one dollar entry fee is probably a “bet” and your odds of winning are largely dependent on chance. As a result, your actions probably constitute illegal gambling.
Nearly every jurisdiction in America outlaws gambling that is not state sanctioned (such as lotteries and regulated casinos). The laws are broadly drafted to include all kinds of actions in the definition of “gambling.” Generally, when one stands to win or lose something of value based on an outcome dependent on chance, he or she is gambling. That “something of value” can be just about anything, including the winner’s payout and the runners-up payouts of the friendly basketball pool. In addition, if you operate your pool online or across state lines, the Federal Government might also be unhappy about your actions.
In addition to government regulation, you should consider the implications of using your personal online accounts to run an office pool. For instance, online financial transaction sites (such as PayPal) often have terms of service that prohibit users from engaging in illegal activities using their services. Thus, if you collect your entry fees using your own personal account, it might cause you problems next time you want to buy an autographed basketball on eBay.
So what should you do if you want to jump in the pool? Well, realistically, law enforcement doesn’t go after every office pool, especially the tiny ones. And you could always offer a pool for free without requiring an entry fee for those who don’t even want to pay the one dollar. But, in the end, you have to decide whether big brother is going to come down on you for participating in the office pool.
And the most important question? Who do I have winning it all? I’m just rooting for my alma mater (Belmont University) to get to the second round. Go Bruins!
