New Jersey Proposes World Cup Betting Tax to Cover Host Costs

New Jersey has proposed a World Cup betting tax that would add a 10% surcharge on all sportsbook revenue generated from tournament wagers. Democratic Representative Michael Venezia introduced Assembly Bill 4838 on May 1, 2026, making New Jersey the first US state to propose an event-specific tax on sports betting revenue.

The timing is no accident. New Jersey hosts eight matches at MetLife Stadium in East Rutherford, including the final. That brings prestige, but it also brings a significant bill. Local estimates put the state’s hosting costs above $300 million, and lawmakers are looking for ways to close that gap without pulling from existing budgets.

What Assembly Bill 4838 Proposes

The surcharge would apply to all World Cup-related wagers placed with New Jersey sportsbooks. That covers moneyline bets, point spreads, totals, prop bets, and player statistics markets. Operators would pay the additional 10% on gross revenue, stacked on top of the state’s existing sports betting tax rate of 19.75%.

The tax would run only for the duration of the tournament, from June 11 to July 19, 2026. Revenue collected through the surcharge would flow into the Casino Revenue Fund and the State General Fund. A portion would be earmarked specifically for infrastructure and tourism-related expenses tied to the event.

The bill also extends beyond betting. Venezia’s proposal includes a 2.5% surcharge on hotel room rentals, a 3% surcharge on food and beverages, a 3% levy on admissions to stadiums and entertainment venues, and a $0.50 fee per prearranged ride within the state. The broader package targets the full range of industries set to benefit from the tournament’s arrival.

How Much Could It Raise?

The numbers in play are large. Investment bank Citizens estimated that US sportsbooks could handle roughly $1.8 billion in World Cup bets across the tournament. New Jersey, one of the country’s largest regulated sports betting markets, is projected to account for around $240 million of that total.

At a 10% hold, the proposed surcharge would generate approximately $2.4 million in additional tax revenue for the state. That figure assumes average margin performance from operators. A hotter World Cup betting market, or a stronger hold percentage, would push that number higher.

Governor Mikie Sherrill has backed the concept of using World Cup-related revenue to cover hosting expenses. That endorsement gives the bill political weight, but it does not guarantee passage. The New Jersey Assembly and Senate still need to advance the legislation before the tournament kicks off in June.

Opposition and Concerns

Not everyone is on board. Representative Josh Gottheimer has come out against the tax package, arguing that New Jersey residents are already under financial pressure and should not absorb more costs tied to the FIFA World Cup.

His concern is not unfounded. While the surcharges target businesses and services, those costs have a habit of moving through the supply chain. Hoteliers pass rate increases to guests. Venues factor levies into ticket pricing. A betting tax on operator revenue is harder to pass on directly, but tighter margins tend to produce narrower promotions and reduced odds boosts for customers.

The bill also faces a practical challenge. The legislative window is short. With the tournament starting June 11, the Assembly and Senate have limited time to debate, amend, and pass the measure before it becomes irrelevant.

A First of Its Kind

No US state has previously imposed an event-specific surcharge on sports betting revenue. That makes Assembly Bill 4838 something of a test case. If New Jersey pushes through a World Cup betting tax and it generates meaningful revenue without significant pushback from operators or bettors, other host states and cities may take notice.

The 2026 World Cup spans the entire country, with matches spread across 16 venues. Several of those venues sit in states with active regulated betting markets. A successful New Jersey model could shift how lawmakers in those states think about using sports betting revenue to offset the real costs of hosting global events.

For now, the bill remains in progress. Venezia’s proposal has support across party lines and backing from the Governor’s office, but the clock is running. The World Cup does not wait for legislation to catch up.