Practice Note
Gambling is prohibited by three federal laws—the Professional and Amateur Sports Protection Act of 1992, the Interstate Wire Act of 1961 and the Unlawful Internet Gambling Act of 2006—which outlaw betting on professional or amateur sports (with exceptions for a few states) and using the Internet for interstate wagers and unlawful gambling. Because placing sports wagers is illegal in most states, allowing your employees to engage in online betting, possibly with out-of-state employees, violates these laws.
State laws vary. A few states allow small pools that limit entry fees and forbid the “house” (the employer) from keeping any winnings; however, federal laws will still apply.
Most workplace policies will prohibit gambling, some with a few exceptions, such as donating all winnings to a charity or creating no-entry-fee pools in which the employer provides a prize.
Objective
[Company Name] prohibits most forms of gambling in the workplace, including professional or organized gambling activities. Where federal and state laws allow, the company may allow exceptions to this prohibition for [Company Name]-sponsored events supporting a charitable or fundraising cause.
Employees must seek the approval of the human resource (HR) department prior to engaging in any gambling activities. Failure to comply with this policy may result in disciplinary action, including possible termination of employment.
The HR department ensures that [Company Name] is in compliance with all applicable federal, state and local gambling laws.
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