Lowering the Stakes: Office Pool Penalties Reduced
August, 2009
Earlier this month, Governor Schwarzenegger signed a bill that reduced the penalties for organizing or participating in office betting pools. When it becomes effective in January 2010 - just in time for the Super Bowl - the Bill (AB 58) will make organizing and participating in a non-commercial betting pool an "infraction" punishable with a maximum fine of $250. Until then, organizing or even placing a bet in a betting pool, including an office pool, can lead to misdemeanor or felony charges punishable by a year of jail time. The Bill was introduced after two women, including a grandmother, were charged for organizing a football pool at an Elk's Lodge in Southern California where 10 people placed a bet of $5 each.
AB 58 creates an exception to California's Penal Code that only applies to betting pools with a maximum prize of $2,500. The exception does not apply to online betting pools nor does it apply to organizers who take a "cut" of the pool. What this means for such online-based office pools as "fantasy football" remains to be seen. And, to prove people are willing to place a wager on almost anything, AB 58 applies to wagering: "upon the result of any lawful trial, or purported trial, or contest, or purported contest, of skill, speed, or power of endurance of person or animal, or between persons, animals, or mechanical apparatus."
Many employers have workplace policies in their employee handbooks prohibiting office pools, but may not enforce them rigorously. Regular updating of these policies is essential because a lack of enforcement or practice that departs from printed policy can lead to problems if policies are inconsistently applied or ignored. Employers should understand that office betting pools are, in fact, illegal. With AB 58, however, the sanctions have been reduced.
Considerations for Employers:
- Should you ban such pools?
- If you become aware of them, should you put a stop to them?
- What role do managers and executives play when it comes to betting pools?
- Should you remind employees that betting pools are illegal?
These are all issues an employer should evaluate in response to this legislation. If your policies need to be updated, contact your nearest Bullivant office.