By Gene Huntington, Administrator
The Gambling Control Division
Last year the University of Montana Grizzlies made it to the second round of the NCAA basketball tournament, and every year interest in the tournament grows.
And as the popularity of "March Madness" grows so does the number of sports pools, as basketball fans try to outguess the NCAA's seeding committee. It' a good time to remind everyone of the Montana gambling laws related to betting on sporting events.
Because so many people participate in NCAA pools, it is important to be able to draw the distinction between "public" and "private" gambling. State law does not address the office pool because state law generally only applies to "public gambling." Public gambling is defined in the law.
Those organizing a private sports tournament pool, meantime, need to keep in mind the key phrase from the legal definition of public gambling: "players are publicly solicited or the gambling activity is conducted in a predominantly commercial manner."
So, if someone is making money from the pool – other than by winning it – or if you are trying to sign up outsiders, you may be conducting "public gambling."
Another aspect of "public gambling" is that it is conducted in a place that the public has access to. Any private gaming must be conducted somewhere other than the part of a business, office building or club that the public has access to.
Taverns that want to set up NCAA pools need to familiar with the way Montana law limits betting on sports pools:
- Each chance to participate (each space) must be sold for the same amount.
- The price of a chance (each space) may not exceed $5.
- The total prize for the pool may not exceed $500.
- Pools may not be combined in any way so as to exceed the $500 prize limit.
- A sports pool may not be conducted on a segment, or portion of a single sporting event.
- The winners of the sports pool must receive 100 percent payout of the pool.
- There must be at least one winner in every pool.
- Every participant in the pool must have an equal chance to win.
- Teams or competitors must be randomly assigned to the participants.
- The card that has the pool must clearly indicate the event, the cost of a square, the number of squares and the amount to be paid to the winner.
- There are no approved sports pool variations that include a "bracketed tournament" format.
These are only some main points. Additional restrictions are contained in law and rules of the Gambling Control Division.
If you are planning something different than this basic sports pool, you would be well advised to check it out with the Gambling Control Division.
Source: The Montana Tavern Times, March. 2007, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.