New Jersey’s World Cup 10% Online Betting Tax Proposal: More Pain for the Sportsbooks
MetLife Stadium in East Rutherford, New Jersey, will host eight 2026 FIFA World Cup matches, including the July 19 final. But there’s plenty of jostling going on off the pitch, as lawmakers are looking at yet another way to bring more income to the Garden State by attaching a special tax to online sports bets on the World Cup offered by licensed casinos, joint operations, and racetracks in the state.
On May 4, Assembly Bill 4838 (A4838) was introduced by Assemblyman Michael Venezia and companioned by Senator Paul Sarlo with Senate Bill 4111 (SB 4111), to add a 10% surcharge on the gross gaming revenue (GGR) that New Jersey sportsbooks would earn from any World Cup bets made online, including moneylines, spreads, totals, prop bets, and futures. This tax would fall on Garden State sportsbooks (not bettors) after payouts, totaling nearly 30% in taxes on World Cup betting revenue over the five weeks.
If the companion bills pass, New Jersey would become the first U.S. state to include a sports betting hike to a single international sporting event.
How the 10% World Cup Betting Surcharge Would Work
If the A4838/SB 4111 bills pass, the New Jersey Division of Gaming Enforcement would throw an additional 10% surcharge on the sportsbooks' “net of patron winnings” from online bets made on the 2026 FIFA World Cup Tournament events. This means that whatever the sportsbooks profit after paying out winners, the Garden State will swoop in and tax them at the additional rate.
What makes this so egregious is that New Jersey already has a baseline 19.75% online sports betting tax; it was 13% from the start in 2018 and was increased to its current level of just under 20%. This means licensed online Jersey sportsbooks will pay nearly 30% of their profits to the state over the summer.
The bills also include a broader “tourist tax” that will affect not only tourists’ pockets but locals' as well. The New Jersey Sports and Exposition Authority (NJSEA) revealed its “The Meadowland District’s 14 Municipalities” list. These surrounding towns would all get a 3% surcharge on food/beverages, event tickets, and “tangible personal property” within that 30-square-mile area, as well as a 2.5% surcharge on hotels/motels, and a $0.50 per-ride fee on all Ubers, Lyfts, and rideshare services. There is good news for the Jersey locals, though, as we’ll be able to claim a tax credit for 2026 and truly offset the cost to the tourists.
New Jersey Governor Mikie Sherrill said the state spent over $307 million for World Cup preparations, and barely anything came from FIFA or New York, which is listed as a co-host. Gov. Sherrill said the revenue will be directed toward recouping hosting expenses, such as significant upgrades to security, transportation, and infrastructure in the area.
Projected Earnings for New Jersey During 2026 FIFA World Cup
According to analysts at Vegas Insider, there could be anywhere from $1.8 billion to $3 billion in U.S. betting handle during the 2026 FIFA World Cup. New Jersey accounts for only 8% of the national betting handle (very disappointed, thought we’d be in the double-digits), which could be around $24 million in GGR; once that 10% surcharge is applied, the Garden State would stand to take $2.4 million (less than 1% of what it spent) from these estimated figures.
Regardless, that’s not exactly getting much back in return. It cost New Jersey well over $300 million to host the World Cup, including around $50 million for NJ Transit to run special train and bus service during these five weeks. Speaking of the train situation, Gov. Sherrill reduced the round-trip ticket costs from $150 per game to $98 (thanks to sponsorships) just as I was writing this article. New York Governor Kathy Hochul also said that, the same day, she would slash bus prices from NYC to MetLife Stadium from $80 to $20 per game. Keep in mind that these tickets typically go for $13 on average at most NJ stops, and there is limited-to-no parking for matches at MetLife Stadium.
Gov. Sherrill has sought help from FIFA to pay some of these transportation costs, but those talks appear all but dead a month out from the World Cup. When the deal was initially signed by former Governor Phil Murphy in 2018, FIFA and Sherrill’s predecessor agreed to provide free transportation for the five weeks. That deal fell through, leaving the costs all on Jersey’s shoulders.
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Are Other States Adding World Cup Fees?
New Jersey is in a class of its own when it comes to pressing down this hard on the sportsbooks’ profits. Initially, it was the steep increase in the online sports betting tax, from 13% to 19.75% last year, and this event-specific uptick would be the first of its kind.
It’s bad, but it’s not what Illinois did for the long term over the last couple of years, replacing its 15% tax on GGR with the first progressive tax rate on sports betting in the country on July 1, 2024. This law “raises the privilege tax on operator’s sports wagering licensee’s annual adjusted gross sports wagering receipts (AGSWR)…” Major operators like FanDuel routinely emerged into the highest tax tier, “40% of annual AGSWR in excess of $200 million.” In addition, the law also banned betting on Illinois college sports and added a per-wager excise tax of $0.25 per bet on the first 20 million annual wagers per operator, and then $0.50 per bet thereafter.
Other World Cup host cities have mostly done a great job of not gouging on prices or taxes, aside from the usual price increases most people will see in parking and hotel rooms for major events. In most cases, parking will exceed $100, while hotel rooms are skyrocketing, up 300% to 400% in host cities and surrounding areas.
Of the 11 U.S. states hosting World Cup matches, only six are in states where online sports betting is legal, such as Florida, Massachusetts, Missouri, New Jersey, and Washington (limited to tribal casino properties). None of those states tried to pull any fast ones on its operators, but Boston was one of the cities to raise its commuter rail prices from $20 to $80 to get to matches at Gillette Stadium in Foxborough.
Final Thoughts from a Jersey Resident
Neighboring New York has the highest online sports betting tax rate (51%) in the United States, along with New Hampshire and Rhode Island at the same rate; Delaware trails slightly at 50%. However, New York is in a different position as the highest multi-operator market. At the same time, New Hampshire uses a monopoly model, and Delaware and Rhode Island use the state lottery model.
With New Jersey being a stone’s throw away from a majority of them, how long will it take before even higher taxes for online sports betting come their way? In 2025, former Gov. Murphy proposed raising the online sports betting tax from 13% to 25% and the iGaming tax from 15% to 25%. It wasn’t until all the big names in the industry pooled their efforts and agreed to the current 19.75% rate. The World Cup tax surge makes the Garden State’s second attempt in two years to get more out of the sportsbooks. Operators have warned that tax rates exceeding 30% would lead to less favorable odds and promotions, with bettors turning to offshore sportsbooks as an escape.
I think we’re safe in the short term, but we have seen Illinois, New Jersey, and New York all swing for the fences in recent years on getting their hands on more tax money in any way they can. Hell, if the Chicago Bears can potentially leave the Land of Lincoln, I say anything is possible. I fear that the World Cup surge is an experiment, and if it works in Jersey’s favor, they could push even more, making it a less desirable home for any online sports betting operator.
All in all, I am very excited about this World Cup, but I could also have done without it in my neck of the urban woods. Between the BENNYs going back and forth to the Jersey Shore and the influx of brand-new guests for five weeks, it’s a good time to get a pool and dip out on society. My biggest disappointment is that the 2026 FIFA World Cup FanFest event in nearby Jersey City was canceled due to potential chaos on the state budget and travel logistics. We could have been watching matches right next to the Statue of Liberty!
