Could Running an NFL Office Pool Land You in Jail? Sports Law Expert Weighs In

The first Sunday (Sept. 13) of the NFL season beckons, and office staff commissioning or participating in fantasy football pools should be aware that their bets carry more risk than simply a small financial loss — they could also result in criminal charges and jail time. A football squares form is shown in a stock photograph. A prominent fantasy sports law professor says organizing an office pool doesn’t come without the risk of legal repercussions. (Image: Shutterstock) Marc Edelman, a law professor at the Zicklin School of Business, Baruch College, spoke exclusively to Casino.org to explain the scope of fantasy sports law and how it relates to office pools. NFL fantasy pools in the workplace have been a hot topic for years, with the rise of remote work allowing employees to participate across multiple states and even countries. Add in bank transfers, and what might seem like a harmless office pool can become a legal minefield for employers and staff. If these office pools involve participants from multiple states, then they clearly fall under the Federal Wire Act. As a technical matter, although almost never prosecuted, they do violate federal law,” said Edelman. “By contrast, if the office pools take place in one state and have no nexus to interstate commerce, their legal status would be determined entirely by the law of that state, and theoretically may vary depending upon the laws in place in individual states,” Edelman explained. Fantasy Sports Prosecution Odds There aren’t many cases of legal action being taken against office pool organizers or participants. As Edelman puts it, “The odds of legal challenge are incredibly low.” Marc Edelman, a professor of law at the Zicklin School of Business, Baruch College, City University of New York. Edelman is a legal expert on fantasy sports, writing numerous papers on the subject. (Image: marcedelman.com) Legal repercussions might be rare, but more costly consequences have been documented, including job terminations. In 2009, Fidelity Investments made national headlines when the financial services firm fired four employees for discussing NFL fantasy sports in the office. So, why don’t authorities take more action when NFL workplace pools are so clearly widespread? Edelman said it’s primarily because investigating, charging, and prosecuting such claims strain local government resources. “There are plenty of laws on the books, both in the individual states and passed by Congress, that are not rigorously enforced unless a concern comes to light,” Edelman said. “In the very rare cases where office pools have led to criminal lawsuits, the original investigation typically began with either a participant themselves coming forward and complaining to authorities, or a reasonably sized payment into one’s account, where the recipient failed to pay tax, and it’s picked up in an IRS audit,” Edelman said. Who Is at the Greatest Risk? Edelman said league organizers and commissioners, who handle the buy-ins and issue the payouts, risk the most legal and employment ramifications. As a practical reality, short of the pool becoming exceedingly large in terms of members, a participant in the pool affirmatively complaining to authorities, or a winner of a big sum not paying taxes and that getting detected in an audit, the risk of legal challenge is low, even though there may be an underlying offense,” he detailed. Edelman said dealing in cash is always best, as moving to digital payments adds legal concern. He advises that commissioners who do insist on accepting digital entries tell their participants not to tag their transactions like “payment for NFL office pool” or something similar. “While it is very unlikely that any state or the federal government would end up investigating a particular pool for illegal gambling, if that were to happen, the language that you put in your payment on PayPal theoretically would be discoverable. That could be used as a smoking gun to prove that an underlying illegal activity occurred,” Edelman said. The post Could Running an NFL Office Pool Land You in Jail? Sports Law Expert Weighs In appeared first on Casino.org.