Wager Mage
Photo: Iserlohn Titans
Office pools are legal in most states, though there are a number of exceptions, including Hawai'i, Florida and Illinois. There are three questions that you should ask before you set up a pool to determine whether the pool is legal. First, does your state allow informal sports betting?
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Read More »Office pools are tricky to monitor not only because they are private activities, but because states have different definitions of gambling. Hawai'i allows "social gambling" in which a person receives his own winnings and persons compete on equal terms, but not activities in which people earn money for promoting gambling. States treat certain games such as bingos and lotteries differently, and may not consider them to be gambling if they are run by charities. The best way to make sure that your office pool is legal is to read state and local statutes regarding gambling before the fact. Then set up a pool that is fair, accountable, and does not involve ambiguous paperwork. If you plan to award substantial amounts of money through the pool, and especially if there is paperwork that can be traced to your company, inform participants that gambling winnings should be reported on IRS forms. Finally, be aware that employees and businesses may be held liable for wrongful activity even if you write out documents that appear to absolve persons and entities from responsibility. The best advice for office pools is to keep betting "in": informal, infrequent and insignificant. That way you won't invite unwanted guests - a category that includes the police and people that you know can't pay up.
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