Last Friday, I had the day off and went out to lunch with my hubby. At the restaurant, I couldn’t help but notice that everyone was gathered at the bar. At lunchtime? Then I saw what all the fuss was about. People were gathered around the TVs to watch the March Madness.
For many businesses, the NCAA basketball tournament brings a much-needed morale boost with friendly competition, team bonding, and possibly some creative excuses for long lunch breaks. While this article may be a day late and a dollar short since the championships are coming up on April 7, before you let your team go full-court press on workplace betting, it’s worth taking a timeout to review California’s gambling laws—because in the Golden State, even office fun has legal boundaries.
Workplace Fun or a Legal Foul?
In California, gambling laws are stricter than a whistle-happy referee. California Penal Code section 337a makes it illegal for individuals or employers to participate in gambling in the workplace. Yes, that includes seemingly innocent “office pools” with a buy-in, even if it’s just a few bucks. While it’s unlikely that the bracket police will storm your breakroom, this is just a friendly reminder that technically, office pools involving money fall into the illegal gambling category.
How Can You Make It Legal?
- Offer Free-to-enter contests with non-cash prizes, like a gift card or bragging rights.
- Recognition or fun rewards (think Best Bracket Trophy or a front-row parking spot) keep things lighthearted without crossing legal lines.
Stay Away From These Fouls:
- Cash buy-ins or betting with money, even small amounts, technically violate California’s anti-gambling laws.
- Winner-takes-all cash prizes are a definite no-no, even if it’s just “a friendly wager.”
Workplace Realities
Let’s face it, legal or not, March Madness pools are happening. And if not basketball, there is always another sport to bet on all year round. With some sporting events come some real workplace side effects, especially if your crew is really into the games, such as longer bathroom breaks, more sick days, and a drop in productivity.
Enjoy the Madness, but Play It Smart
If you want to avoid the potential legal headaches (and awkward conversations with HR), consider these alternatives:
- Company-Sponsored Prizes: Instead of cash pools, offer company swag, an extra PTO day, or a ridiculous trophy for the bracket winner.
- Charity Brackets: Have employees donate their “entry fee” to a charitable cause, making everyone a winner (legally and morally).
- Office Watch Party: If productivity is going to dip anyway, lean into the madness. Host a team lunch or watch party for a major game—it’s team-building with fewer legal risks.
March Madness is meant to be a blast, not a legal bust. So, while you’re cheering for your Cinderella team, keep the fun within legal bounds!