March Madness Office Pools: Harmless Fun or HR Nightmare?

So, you want to help workers bond with each other, and a “March Madness” office pool seems like good, clean fun?

Not so fast, warns Pat Jessie, senior clinical associate of Bensinger DuPont & Associates (BDA), a Chicago-based provider of employee assistance programs.

“Employers need to understand that office pools are not a harmless activity,” Jessie told SHRM Online. “Introducing gambling into the workplace is introducing a risky behavior. It puts two types of employees at risk: One, those who already have a problem with gambling, and two, those that may have the potential for the problem. Employees that have the potential to become pathological gamblers may become addicted to the action [and] the thrill of winning and eventually may become problem gamblers.”

Lost Productivity

Not only that, it can hamper productivity, according to global outplacement firm Challenger, Gray & Christmas Inc. IT managers can anticipate a noted decrease in employee productivity and network bandwidth during the tournament, especially when you consider the prevalence of online gambling sites and games that are broadcast over the web. March Madness kicks into high gear on March 15, 2009, when the NCAA tournament participants are announced and the college basketball games follow.

Jessie based her observation on FBI statistics as well as anecdotal evidence gathered from BDA gambling help line callers, which suggested that March Madness office pools might be problematic for some employees.

In 2006, the FBI estimated that Americans were gambling $2.5 billion <http://www.foxnews.com/story/0,2933,188043,00.html> on the NCAA tournament each year, with only $80 million bet legally through bookmakers in Nevada. That left more than $2.4 billion in funds gambled illegally, much of which was placed through bookmakers, but some of which was bet in office pools. (Yes, office pools are still illegal in many states.)

Jessie acknowledged that office pools can fulfill a need for workers to bond with one another, but she recommended that managers look for team-building exercises instead.

Noting that the economic downturn has made more people more vulnerable to gambling problems, Jessie suggested that March Madness office pools might have an especially harmful effect in 2009. Jessie noted that BDA has “received anecdotal evidence that the economy is having an impact on why people are gambling. Unemployed callers have stated that they are gambling in an effort to supplement their income.”

Yet, there is some dispute about whether or not the crumbling economy might be fueling more dysfunctional gambling behavior: In an MSNBC article, Jeffrey Marotta, a researcher with a consulting business, Problem Gambling Solutions Inc. in Portland, Ore., said that yes, economic challenges are driving more gambling problems. “There may be a decrease in general [gambling] revenues but more problem gamblers,” he said. Responding to Marotta, in the same piece, Holly Thomsen, a spokeswoman for the American Gaming Association, strongly contested the idea that the economy could be a catalyst for gambling problems: “To be honest with you, I don’t know where they’re getting that,” she said. “I don’t know that there’s any evidence. They’re making a speculation that has no basis in fact.”

According to the National Council on Problem Gambling (NCPG), in any given year roughly 1 percent of U.S. adults, or some 2.3 million people, are considered to be pathological gamblers. NCPG defines "pathological," or "compulsive," gambling as “a progressive addiction characterized by increasing preoccupation with gambling, a need to bet more money more frequently, restlessness or irritability when attempting to stop, "chasing" losses, and loss of control manifested by continuation of the gambling behavior in spite of mounting, serious, negative consequences.”

Knowing the warning signs is a crucial first step for HR professionals so they can make sure employees get the help they need before the problem escalates, according to BDA. While there are a number of general indicators of problem gambling, others are more workplace specific.

Warning signs include: • Changes in absenteeism, or tardiness. • Absences from the work area. • Excessive phone use. • Higher number of illnesses, ailments, injuries or work-related accidents. • Mood swings, anxiety or irritability. • Complaints from customers, co-workers or others. • Changes in productivity and quality of work. • Changes in ability to concentrate.

“Employers need to realize that harmless March Madness office pools are often catalysts for some people to become involved in sports betting because they get a taste of the world of gambling,” Jessie said. “As these warning signs indicate, problem gambling is a serious mental health disorder that needs immediate and appropriate attention. It is important that employers make problem-gambling counseling available: At-risk employees can get the confidential help they need from a company’s employee assistance program.”

Maria Williams is a staff writer for SHRM Online.