Cybersecurity Consulting
February 09, 2023
5 Minutes
About 20% of adults bet on sports at least once a month in the US. As Super Bowl season approaches, fans across the country are eager to enjoy the game and participate in betting pools with friends or coworkers. But are these Super Bowl pools legal and safe?
If you’re interested in learning how to avoid online scams, check out this infographic: Avoiding Phishing Scams: 6 Things to Look Out For!
Read on to find out whether it is legal to hold a Super Bowl pool in your state, whether you should worry about employees using sports betting websites or apps, and what are common scams targeting sports fans that could affect your organization.
The simple answer is technically no. Most states deem “office betting pools,” or those organized by a group of friends, illegal. For example, such activities are prohibited by law in 37 states including Illinois, California, and New York.
However, 13 states allow exceptions for “friendly wagers.” Additionally, three of those 13 states require the wagers to take place in a private residence.
A betting pool is considered a “friendly wager” if:
The states that allow friendly wagers are Arizona, Wyoming, Colorado, Minnesota, Kentucky, Ohio, Connecticut, and Maine. The states in which you can participate in a friendly wager provided it takes place in a private residence are Texas, Alabama, and Hawaii.
Essentially, for anyone asking, “Are football pools illegal?” the answer is “yes.” If a Super Bowl pool takes place for profit, it is illegal in every state, unless the organizing party has the necessary operating licenses.
While Super Bowl pools organized by small groups are rarely prosecuted, if you want to make sure you are following all laws, it is best to check with your state and local regulations. Since gambling at work involves other parties such as your company’s offices and employees, it is probably best avoided.
Online sports betting is now legal in many states. Since 2018, the Supreme Court lifted a federal ban prohibiting online betting in all states but Nevada. The lift of this prohibition has allowed many states to create their own laws around online betting.
For example, Illinois has allowed bettors to use online sports betting apps since March of 2022. Fans of sports betting can now use these apps as long as they register online. Previously, they could only do so after in-person registration.
However, Texas—a state with some of the strictest laws around gambling—does not allow online sports betting. California as well has no legal online betting options at the moment.
Just like any other business, online betting apps and sites are required to protect their customers’ data such as personal personally identifiable information (PII) and financial info, including credit card numbers. To ensure your safety, check the sites privacy policy to see their plans for safeguarding customer info.
Gambling app laws keep changing as local governments pass bills and voters decide which propositions go through, so continue checking your state’s provisions for online betting for updates.
If you or your employees are not a resident of a state where online sports betting is legal, but are physically present in that state at the time of betting, you can do so legally in most of them.
Of course, you have to be at least 21 years old and present in the state where it is legal to participate in online betting.
However, in some of these states, such as Nevada, gambling app laws require you to register in-person before betting online. Therefore, it is best to check each state’s rules on online betting before you place bets while traveling for the holidays or vacation.
Related Blog: 7 Ways to Build a Security Policy for Remote Workers
There are a number of websites and apps out there that serve sports fans across the country and are safe to use. We recommend you check user reviews online and ensure the website or app you use are legitimate.
However, every year, the Better Business Bureau sends warning of online scams around Super Bowl betting online. Users have reported never receiving winnings or getting phishing emails asking them for their personal information.
Let’s look into the most common cyber scams concerning online sports betting:
With the rise of online sports betting and fans wishing to have some fun and cash in after betting on their favorite teams, scammers have taken this opportunity to create fake websites.
These pages often have URLs similar to the site they are mimicking, except for a slight alteration in how the company name is spelled or a different top-level domain (like “.co” instead of “.com”).
These scam sites take advantage of unsuspecting users by pretending to be legitimate online sports betting pages. Users who invest money in these sites may never see any winnings or receive any funds.
Additionally, their credit card information is also jeopardized. We recommend ensuring the site you are visiting has the correct URL to avoid falling for copycat pages.
Phishing is a cyberattack delivered via email or text message in which a bad actor uses information about their victim, such as their name, job title, company name, or even personal information shared on social media, to craft a message that seems to come from a legitimate source.
These messages trick the recipient into clicking on a malicious link or file, providing sensitive information, or submitting payments to the scammer.
These types of scam increase during big events such as the Super Bowl. Whenever you get an unexpected email or text, ensure you know who the sender is. Do not click on any links or download files, and when in doubt, report it on your email server or to your company’s internal IT team.
Consider warning your staff about the rise in phishing scams, especially around big events such as the Super Bowl.
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Another prominent scam reported to the BBB during sports season are fake social media posts promising “guaranteed wins.” These posts lure users into betting with an unknown “handicapper” who claims to have insider information on how matches will fare.
These posts often have images of stacks of money or luxury items obtained through “successful sports bets.” The fake advertisements often brag about “guaranteed wins” and “money back” offers so that unsuspecting victims are more willing to interact with these posts.
Besides such gambling activities being illegal, as explained above, most (if not all) individuals who place bets with a handicapper on social media will never see any monetary returns. Additionally, their personal information or credit card information has most likely been compromised.
As is usually the case, if an offer is too good to be true, then it is probably a scam. Never participate in any sports gambling activities unless it is in a state where it is permitted and with a licensed business.
Unless you and your friends organize a “just for fun” sports betting pool where the goal is not company profit, most sports betting activities are considered illegal.
Online sports betting has become legal in a number of states as long as the website or app is legitimate.
With so many online scams and cyberattacks rampant on the web, we recommend users double check the legitimacy of websites and apps they use.
To learn how to prepare better for these type of scams and stay secure, check out DOT Security’s infographic Avoiding Phishing Scams: 6 Things to Look Out For!