We’ve Got a Basketball Jones

Keeping the Madness in Check: How to Keep Sports Gambling Under Control

by Jeremy Locklear

at Parker Poe Adams & Bernstein LLP

It’s that time of year again. March Madness is around the corner and people are buzzing about brackets. Maybe you are even hosting a company-wide bracket contest. While these friendly contests can keep employees engaged and often help to boost employee morale, they still present concerns for employers. And with the increase in legalized sports betting across the country, these concerns continue to grow.

In 2018, the U.S. Supreme Court struck down the federal prohibition on sports betting when it decided Murphy v. National Collegiate Athletic Association. While Murphy did not legalize sports betting, it opened the door for regulation at the state level. Numerous states and Washington, DC have decided to legalize sports betting. Beginning this week, North Carolina became the latest to allow its residents to engage in online sports betting, with as many as eight licensed sportsbooks becoming legal within the state just days ahead of the March Madness kickoff.

As more states look to enact laws to regulate the industry, sports betting continues to raise a bevy of concerns for employers. Among the chief concerns of employers is the potential lack of employee productivity and the increase in network activity. Many employees may be hyper focused on their devices in the coming weeks as their beloved collegiate sports teams gear up for a deep tournament runs. Others may be seeking to score big on sports bets. Regardless of the reason, employers may be faced with employees who are distracted or simply absent from work, which cuts down on deliverables. Consider ways to keep employees engaged in their work tasks while also boosting morale during this exciting time of the year.

Technology also allows employees to be consistently tuned in. With the implementation of online sports betting across the country and multiple sports betting apps flooding the market, more employees have access than ever before. These employees will likely be livestreaming games on the company network, or even placing bets while logged in at work. The increase in activity may lead to a drain in the performance of the company’s computer network.

As new laws are implemented to regulate this industry, employers are faced with legal risks. Employers should consider ways to mitigate their risk and develop a better understanding of what is actually permitted where they operate.

• Risk Assessment: Whether it be from a decrease in productivity or an increase in network usage, identify the potential areas of risk.
• Help and Support: Make sure employees are aware of the resources available to them. Employee Assistance Programs can help with potential gambling addictions.
• Implement Strong Policies and Procedures: Whenever in doubt, the best defense is a good offense. Employers can always develop policies and procedures to help guide employees and this area is no different. A sports betting policy can cover what sort of betting activities are acceptable in the workplace. Likewise, review and update any company technology policy to consider whether to restrict certain activities that might lead to a drain on the computer networks performance.

Consider the Implication of Other Protections: There is the potential that the Americans with Disabilities Act (ADA) can be impacted by sports betting. While the ADA does not require an employer to accommodate an employee who is a compulsive gambler (it specifically excludes compulsive gambling as a covered disability) it may come into play if the employee has an underlying condition that either manifests itself in the form of compulsive gambling or is concurrent with the gambling issue. Be cognizant of these issues and remember to assess on a case-by-case basis.