Are office pools legal?
It depends on your state and on whether money is involved. Sources written for employers say that office pools with money in them are against the law in many states, and that keeping money out removes most of the problem. I'm not a lawyer, so here's what those sources say, with links.
What the sources say
- SHRM, the HR professional society, published an article for employers in March 2022. It says office betting pools are outlawed in most states when money is involved, and that employers can avoid most of the legal issues by keeping money out of them.
- ARAG, a legal insurance company, says office pools are considered gambling in many cases and that the answer depends on state law. It notes that some states allow small social bets when everyone is in the same state and the organizer takes no cut.
- Foley & Lardner, a law firm, wrote in 2012 that office pools are considered illegal in many states if they involve betting real money, and that taking part should be completely voluntary.
- Littler, an employment law firm, advised in 2016 that employers should avoid formally sponsoring pools or wagers where money will change hands, and should make clear what is and isn't permitted at work.
- ADP wrote in 2018 that any company-run pool or fantasy league should be free for any employee to enter.
What usually decides it
- Whether money goes in. An entry fee is the first thing every one of these sources looks at.
- Whether something of value comes out. A cash payout is the second.
- Your state. The rules are state law, and they differ.
- Whether the organizer keeps a cut. ARAG lists this as a condition in states that allow small social bets.
- Whether everyone is in the same state. SHRM notes that players in different states can make a pool unlawful. That matters for remote teams.
- Your employer's policy. ARAG points out that an employer can prohibit pools even where the law allows them.
Why a pool with no money is a different thing
When nothing is paid to enter and nothing of value is paid out, there's nothing staked and nothing won. ARAG says free-to-play options with no buy-in can still create engagement without the potential legal risks. That's the kind of pool this site is for.
The workplace side
The law is only half of it. Littler raises two concerns that have nothing to do with gambling statutes: people who feel excluded or harassed, and lost productivity. A pool that's free, voluntary and friendly helps with the first. A pool that takes a few taps a week helps with the second.
If your office has no written rule, this sample office pool policy covers the points these sources tell employers to cover.
What I did about it in this product
Breakroom Pick'em has no entry fees, no prizes, no odds and no money features. A player gives a display name and their picks. A player can win a line on a leaderboard. The clean league promise spells it out for HR and compliance.
I build software. I'm not a lawyer and this page isn't legal advice. Laws differ by state and they change. If your workplace has its own policy on office pools, follow that policy, and ask your own counsel about anything that matters.
Sources
- SHRM, "How Employers Can Approach March Madness Office Betting Pools," March 15, 2022
- ARAG Legal, "Are Office Pools Legal? What to Know"
- Foley & Lardner, on office pools and employers, August 20, 2012
- Littler, "Gambling in the Workplace: Is Anything a Safe Bet?," February 1, 2016
- ADP Spark, "Managing Office Pools and Fantasy Sports Leagues in the Workplace," September 25, 2018
I read each of these on November 11, 2026.
Questions
Is this gambling?
No. Nobody pays to play and nobody can win anything of value, so nothing is being wagered. It's a free game where you pick winners and see who's ahead. The only payment is the organizer buying the software, and that price is the same no matter who wins.
Can we put money on it ourselves?
Please don't. The Terms don't allow betting on a league, the site has no way to track money, and I'll close a league that's being used that way. If your group wants a cash pool, this isn't the right tool.
Can the winner get a prize?
No. Nobody pays to play and nothing of value gets paid out, and that includes a gift card from the boss. The winner gets the top spot on the board. There are weekly awards too, like the Perfect Card and the Wooden Spoon, but those are just titles.
What do I tell HR?
Send them the no-betting promise page. The short version: players give a display name and their picks, nobody pays anything, and nobody wins anything of value. There's also a sample office pool policy on this site that HR can copy.
Written by the person who builds Breakroom Pick'em at Lind-Sac AI Solutions LLC, Omaha, Nebraska. Last reviewed .