Gambling at work costs U.S. businesses billions of dollars every year. In 2025, the American Gambling Association estimated that $3.1 billion would be wagered in men's and women's college basketball tournaments.
But most of this gambling doesn't take place at the sportsbook. Your employees are gambling at work right now. You can't just throw up your hands in defeat, however.
Gambling addiction takes a toll on productivity, workplace morale, and company profits. And, once a gambling problem has become entrenched, it isn't easy to overcome.
In this article, we will cover how gambling shows up in your workplace, the steps you can take to stop it, and how to help your employees avoid and overcome gambling addiction.
Understanding Gambling in the Workplace
Gambling at work doesn't look the same way as it used to. Participating in a March Madness bracket may seem like innocent fun. But, 10-15% of Americans are wagering on office pools.
Much gambling doesn't involve traditional "betting" at all. Let's take a closer look at the different types of workplace gambling you should be looking for.
Forms of gambling in the workplace
Gambling at work is a broad category that includes all of the following:
- Office pools and brackets: More than 1 in 10 Americans participate in an office March Madness pool.
- Fantasy leagues and sports betting: The majority of workplace gambling takes place through sports betting and fantasy leagues.
- Lottery pools: Coworkers purchase lottery tickets together or as part of a workplace incentive program.
- Digital gambling: Employees gamble online using company devices and during company time.
Peak gambling times
Of course, there are specific times of the year when your employees will gamble more than others.
The most notable is March Madness, when businesses take a productivity hit of about $20 billion. Employees bet on March Madness pools and watch basketball games online from their desks during work hours.
Other peak gambling seasons include:
- Late January/early February playoffs and Super Bowl
- October/November MLB playoffs and World Series
And we are now dealing with the growth of the prediction market space, where people can literary bet on anything using apps like Kalshi, Polymarket, PredictIt, Novig, and Aver.
Illegal gambling at work?
Is workplace gambling illegal? This is where things get tricky.
Federal law says that gambling on company time or on company property is against the rules. Office pools in California, for example, are illegal according to Penal Code section 337a.
If your business has a national presence, you'll have to deal with a patchwork of different state laws. Most states say office betting pools are illegal if entry fees and prizes are involved. March Madness brackets are technically illegal in most states if they involve money.
The best policy is to establish clear guidelines for gambling at work and enforce them. This will benefit your business and your people.
Writing an Effective Gambling Policy
First, you need to protect your business. A comprehensive gambling policy in your handbook can help. However, 90% of companies don't have any policy on gambling at work.
Some employees don't even know if they have a policy or not. Here's what your workplace gambling policy should include.
Essential components of a gambling policy
Your gambling policy must cover all of the following:
- Gambling definition and scope: "any activity involving some element of chance where an item of value is placed at risk to gain something of greater value."
- Prohibited activities: State specifically what activities are not allowed (online sports betting, office pools, fantasy sports)
- Legal considerations: Include a reminder that some forms of gambling are illegal
- Problem gambling and productivity: Explain how gambling at work impacts productivity
- Resources: Provide a list of resources for employees to access if they are struggling with gambling addiction.
Your gambling policy is also connected to your disciplinary process. It's essential to be very clear on the gambling behaviors that will result in immediate termination.
Communicating your policy to your team
Creating a gambling policy isn't enough. You also have to communicate it to your employees, distribute it in writing, and include it in your company handbook.
Educational materials can help employees understand the policies, reasons for them, and consequences of breaking the rules.
Gambling websites can also be a productivity distraction. Ask your IT team to block websites and apps that offer gambling opportunities. If employees use their devices, you should set clear rules about gambling activities during company time.
Acceptable gambling at work
Some gambling behaviors are okay, and some are not. Office pools or betting activities that have cash or prizes are not okay. The use of company time or resources for gambling is also not okay.
Employees should not be accessing gambling websites or apps using company devices. It's important to set boundaries for what's acceptable and what's not.
If you are sponsoring company activities, you should avoid entry fees and cash prizes to keep within the legal gray zone.
Alternatives to gambling at work
Gambling is a form of entertainment, and some level of social activity is good for workplace morale. Encourage gambling alternatives that are fun and nonproblematic.
Activities such as office team-building events that don't involve money are a good alternative to gambling.
Identifying Signs of Gambling Addiction at Work
Spotting a gambling problem is the first step in supporting your employees. Unlike some addictions, there are no physical signs of problem gambling. People with gambling issues develop specific behavioral patterns over time.
Behavioral warning signs
Employees may start to act strangely when they have a gambling problem. They may become obsessed with gambling activities or wagering opportunities.
They could talk excessively about gambling or check their phones constantly for betting results. Employees with gambling problems often take unexplained absences from work. Behaviors that may indicate problem gambling include:
- They organize office pools or betting opportunities.
- They visit gambling websites.
- They talk incessantly about their "big win" or other gambling stories.
- Gambling materials are strewn across their desks.
Performance and attendance
Productivity usually decreases as a gambling problem increases. People with gambling problems often lose time from work or study. The majority of problem gamblers report that gambling has a negative impact on their work or school performance. You should watch for people who:
- Are chronically late.
- Take excessive or unexplained breaks.
- Skip work frequently with little or no notice.
- Show up at work without an alarm when they're really late.
- Miss project deadlines.
- Work quality declines.
Employees may even try to manipulate their vacation or paid time off requests to compensate for gambling time. When employees have gambling problems, they often won't take time off from work or school.
Financial issues
Financial issues are usually at the heart of most gambling problems. Employees may ask coworkers for loans or request advances on salary or wages. In some cases, people experiencing desperation and financial hardship due to gambling addiction will even turn to their employers for money.
Employees may start to receive bills and bank statements at work. In some cases, they may claim expenses on fake invoices.
Mood changes and emotional effects
Gambling addiction is a serious mental health problem. Gambling addiction directly affects people's emotions by altering dopamine and serotonin production, the brain's "happy" chemicals.
Problem gamblers exhibit erratic and exaggerated moods, depression, anxiety, irritability, and stress. Money-related stress from gambling is chronic and leads to elevated heart rates and insomnia.
Suicide is the most serious risk of problem gambling. Gambling addiction has the highest risk of suicide of all the addictive disorders.
Helping Employees with Gambling Problems
When you've identified gambling issues in the workplace, it's time to step in. You must balance setting boundaries with providing support to your employee. Both your employee and your business will benefit from your actions.
Talking to employees about gambling problems
Approaching an employee about gambling is a delicate process. Prepare for the conversation in advance and be careful to stick to facts.
Avoid assigning blame and make sure you don't accuse your employee of anything. When confronting your employee, use "I" statements instead of "you" accusations. For example:
- "I've noticed changes in your attendance/work performance and am concerned about you."
- "I can't afford to let you continue this behavior."
Avoid using an accusatory tone of voice, and listen more than you talk. Approach your conversation with an open mind and a supportive attitude.
Offering Employee Assistance Programs
Many EAPs offer free support to employees for gambling addiction. Employee Assistance Programs will connect your employee with counseling and other educational resources.
They may be able to refer your employee to gambling addiction recovery programs or treatment facilities. The good news is that most EAPs offer 3-5 free counseling sessions before employees need to move into their behavioral health benefits.
Make sure your employees know that this benefit is confidential. Many employees don't take advantage of Employee Assistance Programs because they fear retribution.
Prepare your managers
Managers need to be prepared to spot warning signs of problem gambling and handle it. Manager training can also help them learn how to approach employees with gambling problems compassionately.
Provide managers with training on what problem gambling looks like and how to spot red flags. In some cases, hearing a story about problem gambling and recovery from a peer might be the best way to open up the conversation.
Terminating an employee for gambling
Gambling at work is not against federal law. However, employees who gamble while on duty or on government property are breaking the rules.
There is some debate around terminating employees. It is also essential to be very clear about behaviors that result in immediate termination.
Progressive disciplinary policies work better than one-strike policies. A supportive intervention may be the correct response before termination.
Conclusion
Gambling at work is a big problem. You need to be able to spot warning signs early, have clear policies, and support your employees.
Your gambling policy safeguards your business, but it is only as good as your communication plan. Make sure everyone knows the policies, and make sure your managers are trained to have difficult conversations in a nonjudgmental manner.
Most people who experience gambling problems at work are looking for help. The hard part is that they don't know where to go. Support your employees. You don't have to be their therapist or solve their problems. You just have to give them a workplace free of stigma so they can ask for help when needed.
Review your policies, talk to your managers, and ensure everyone on your team is aware of what resources are available. Gambling addiction is difficult to overcome, but your people and your business will be better for it.
FAQs
Q1: How common is gambling in the workplace?
Gambling in the workplace is more common than you might think. Nearly 50% of U.S. workers have participated in an office pool at some point in their career. Overall, about 70% of all employees have engaged in some form of gambling activity at work.
Q2: What are the legal consequences of gambling at work?
Gambling at work isn't always illegal, but it is subject to certain restrictions. Federal law prohibits gambling while on company time or on company property. Employees in California can't participate in office pools because the California Penal Code 337a makes it illegal.
Q3: How can an employer create an effective policy for gambling at work?
An effective workplace gambling policy should clearly state what gambling is, what gambling activities are not allowed, any applicable legal considerations, how it affects workplace productivity, and where to get help.
Q4: How can you identify a gambling problem in an employee?
Look for behavioral red flags such as unexplained absences, a drop in work quality or productivity, frequent talk about gambling or past "wins", secretive or nervous behavior. Performance and attendance problems, mood changes, and emotional distress are other warning signs.
Q5: How should employers handle an employee's gambling problem?
Start by talking to the employee in a supportive way. Give a warning, lay out expectations, and make sure they know where to get help. Document your conversation and any progressive discipline if gambling problems continue.