New Jersey Targets World Cup Betting With New Tax

Dr. Annelies De Vos · 2026-05-07

New Jersey is gearing up to host eight matches of the 2026 FIFA World Cup, including the final at MetLife Stadium. That's a huge deal for the state, but it also comes with big costs. To help cover those expenses, lawmakers are proposing a new tax on sports betting related to the tournament. On May 1, 2026, Democratic Representative Michael Venezia introduced Assembly Bill 4838. This bill would add a temporary 10% surcharge on all online sports betting revenue from World Cup wagers. If it passes, it would be the first time a U.S. state has targeted an international sporting event with a specific betting tax. ### Why This Matters for New Jersey The World Cup is expected to draw hundreds of thousands of visitors to the area. MetLife Stadium alone will see massive crowds, and the state will need to ramp up security, transportation, and infrastructure. All of that costs money—potentially hundreds of millions of dollars. By adding a surcharge on World Cup betting, the state hopes to bring in extra revenue without hitting local taxpayers directly. The idea is that bettors, many of whom come from out of state, will help shoulder the financial burden. ### How the Surcharge Would Work Here's what the bill proposes: - A 10% surcharge on the gross revenue that online sportsbooks earn from World Cup bets. - The surcharge would be temporary, applying only during the World Cup period. - It would apply to all bets placed online, including pre-game and live wagers. This is different from regular sports betting taxes, which are already in place. The new surcharge would be on top of existing taxes, meaning sportsbooks would pay more for every dollar they earn from World Cup action. ### Potential Impact on Bettors and Sportsbooks For bettors, the surcharge likely won't change much directly. The tax is on the sportsbooks' revenue, not on individual winnings. But sportsbooks might adjust their odds or promotions to offset the extra cost. That could mean slightly less favorable lines for World Cup bets. For sportsbooks, this is a bigger deal. A 10% surcharge on top of existing taxes cuts into their profit margins. Some might argue it discourages them from offering competitive odds or promotions during the tournament. ### What Critics Are Saying Not everyone is on board with this idea. Critics say it's a bad precedent. If New Jersey can tax World Cup betting, what stops other states from doing the same for other big events? The Super Bowl, the Olympics, or the March Madness tournament could all become targets. There's also concern that the surcharge might drive bettors to unregulated offshore sites. If legal sportsbooks offer worse odds because of the tax, some people might look for better deals elsewhere. That would mean less revenue for the state, not more. ### The Bigger Picture New Jersey has been a leader in sports betting since the Supreme Court struck down the federal ban in 2018. The state now has a thriving market with dozens of online sportsbooks. But this new proposal shows that even successful markets can face new challenges. The 2026 World Cup is still a few years away, but the planning is already underway. This bill is just one piece of a larger puzzle. The state is also working on security plans, transportation upgrades, and marketing campaigns to make the most of the global spotlight. ### What's Next for the Bill Assembly Bill 4838 has been referred to the Assembly Judiciary Committee. It will need to pass through committee hearings and floor votes in both the Assembly and the Senate before it can become law. Governor Phil Murphy would then have to sign it. Given the bipartisan support for hosting the World Cup, the bill has a decent chance of passing. But it's not a done deal yet. Lawmakers will need to weigh the potential revenue against the risks of driving bettors away. ### Final Thoughts New Jersey's proposal is a bold move. It's trying to capture some of the economic energy of the World Cup and use it to cover the costs of hosting. Whether it works or not will depend on how sportsbooks and bettors respond. For now, the state is betting that a small surcharge won't scare off the millions of people who will be placing wagers on the world's biggest sporting event. Only time will tell if that bet pays off.