– Stephanie Rabiner is a contributor to FindLaw’s Free Enterprise blog. FindLaw is a Thomson Reuters publication. This article originally appeared here. –

March Madness is here and ready to distract your employees. They will be filling out brackets this week, crumpling them up, picking No. 5 seeds for upsets.

And they’ll be gambling the whole time, too.

You may have let it slide during the Super Bowl, but with office pools cropping up everywhere, you’re probably wondering whether you have a legal obligation to shut them down.

It depends.

Though federal law frowns upon the practice, state law varies as to whether office pools constitute illegal gambling. Local law probably has something to say about it, too.

Texas permits office pools so long as they’re private and the organizer doesn’t make any cash running the pool, but Illinois considers office pools to be misdemeanor gambling. They’ll push that up to a felony if caught twice.