Football season is here. An office sports pool or fantasy football league may seem like harmless fun, but when it occurs in the workplace, employers may be wagering more than they realize. There are several potential legal risks that employers should be aware of when it comes to inter-office sports betting and fantasy sports.
Trash-talking and fantasy football appear to come hand-in-hand. This and more could create the risk of potential claims of discrimination, a hostile work environment and/or harassment. For example, if one or more individuals feel excluded from the office pool, pressured to join, mocked or ostracized for abstaining, or offended by related trash talk, it could lead to a potential claim. This can occur when an individual feels that they are being subjected to disparate treatment or a hostile work environment based on a protected characteristic(s), such as gender, race, age, disability or sexual orientation.
Claiming that the office pool is voluntary and not work-related does not guarantee a win. Employers should remain cognizant of the above risks and consider whether an office pool or fantasy league is appropriate, voluntary and accessible. In addition, if issues occur, employers should take prompt and appropriate remedial action to correct unsportsmanlike conduct.
Employers should also consider that office sports pools and fantasy leagues often require an entry fee and provide financial rewards to the winner(s). Depending on the situation, this may constitute illegal gambling. For example, under New York State law, “gambling” is defined as an action where an individual stakes or risks something of value upon the outcome of a contest of chance or a future contingent upon an event not under their control, upon the understanding that they will receive something of value in the event of a certain outcome. Often, this definition is applicable to office pools or fantasy leagues that require participants to pay an entry fee for the chance of winning a reward if their predicted outcome is correct. If it occurs, unlicensed gambling may subject operators and participants to, among other things, criminal penalties under New York State law.
In addition, allowing remote workers and employees located in other states to participate in an in-office pool or fantasy league may add another layer of legal risks if gambling occurs across state lines. Federal interstate gambling laws, such as the Interstate Wire Act of 1961, prohibit the use of electronic payments across state borders for gambling purposes.
Employers should also consider non-legal risks relating to office sports pools and fantasy leagues, including potential disruptions to employee productivity, the impact on company resources, and disruptions in the workplace due to disagreements and hostility amongst employees.
Employers should review their current policies and update them if needed to prohibit gambling during work hours and in the workplace. Potential language specifically addressing sports pools or fantasy leagues may also be beneficial to mitigate the risk of any future claims against the company arising from non-sanctioned in-office sports pools and leagues.
Go Bills.
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