March Madness office pools: How they work in NY — and why they fall into a legal gray area

For many people, March Madness betting still starts the old-fashioned way: with a bracket, a small buy-in and an office or friend-group pool.

Even as mobile sports betting has surged in New York, these informal pools remain a common way for Long Islanders to take part in the NCAA’s annual Division I college basketball tournament, with separate men’s and women’s championship brackets.

Here’s what to know about how they work, when to enter — and where they fall under state law.

When do March Madness brackets lock?

The men’s and women’s NCAA Division I basketball tournaments both begin with play-in games known as the First Four, but for most fans the main tournament starts when the first full round tips off. This year, the men’s main bracket begins March 19 and ends with the championship game on April 6, while the women’s begins March 20 and ends with the title game on April 5.

Most office brackets lock just before the first full round of games tips off. Many office pools ignore the play-in games and require picks before the main first round. Players should check their pool’s rules carefully.

What is an office pool?

An office pool is a bracket contest in which participants pick winners all the way through the NCAA tournament, down to the national champion.

Stephen Shapiro, a professor of sport and entertainment management at the University of South Carolina, said players earn points when the teams they pick win and do not get points when they lose.

“You’re getting points for when the teams you choose win and you don’t get points when they lose,” Shapiro said. “You win by getting the most points.”

He added that the points usually increase as the tournament goes on.

How does a bracket work?

The bracket tracks the tournament as teams advance through each round. Separate brackets are used for the men’s and women’s tournaments.

Each tournament begins with 68 teams, including play-in games that narrow the field before the main first round. Participants fill out their picks before the tournament starts, trying to predict which teams will survive each round and ultimately win the championship.

How is the money handled?

Players usually put money into a shared pool.

Shapiro said the payout depends on how the group organizes it. In some pools, the winner takes all. In others, first place gets the biggest share, followed by smaller payouts for second or third place.

Do you need to know basketball to play?

Not necessarily. Part of the appeal of March Madness pools is that many participants join even if they don’t closely follow college basketball.

Players often make picks based on rankings, school names or instinct, rather than detailed knowledge of the teams.

Are office pools legal in New York?

Not exactly — they generally fall into a legal gray area.

Sarah Goodman, a labor and employment practice attorney with Offit Kurman, said most informal office pools are not legal in New York because gambling in the state generally must be conducted through licensed sportsbooks. Still, she said small pools typically fall into a gray area because they involve chance and money but are informal and limited in scope.

“Certainly, from a legal standpoint, they exist in a gray area,” Goodman said.

Why are office pools usually tolerated?

Because they are typically small and informal.

Goodman said enforcement is rare for small office pools, and the legal risk is often more theoretical than practical. Lawmakers have attempted to address the mismatch between the law and the widespread popularity of informal sports pools, but those efforts have not changed the rules for March Madness.

What are the bigger risks for employers?

Goodman said the bigger concern is often workplace management, not criminal enforcement.

Companies may want to avoid situations where employees feel pressured to participate or where company resources are used to run the pool.

What makes something count as illegal gambling at work?

Andy Levin, a labor and employment lawyer with Ogletree Deakins, said workplace betting in New York is generally defined by three elements:

• Is it a game of chance or skill?
• Is there consideration, meaning people are asked to pay into the pool?
• Is there a cash prize?

“If you have those three elements, you’re likely to fall under the laws that govern gambling,” Levin said.

Is there a safer way to run one at work?

Levin said employers can reduce risk by removing one of those elements.

For example, a pool without money is less likely to raise legal concerns. An employer could offer a trophy or prize instead of cash, though he acknowledged that may be less appealing to participants.

When do office pools become more risky?

When they get too large or too public.

Levin said small pools generally avoid scrutiny, but problems can arise when a pool grows significantly or the organizer takes a cut.

“Don’t offer thousands of dollars for a prize,” he said. “Office gambling or pools have made the news oftentimes because they’ve grown so large and the person running it has taken a cut.”