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New Jersey lawmakers have introduced a bill that would temporarily increase taxes and surcharges tied to the 2026 FIFA World Cup, including a new 10% surcharge on New Jersey online sports betting from matches. However, the tax would not come out of bettors’ pockets.
Senate Bill 4111, introduced by Sen. Paul Sarlo, is designed to help New Jersey cover costs associated with hosting eight World Cup matches at MetLife Stadium this summer, including the tournament final on July 19. Instead of passing the tax onto customers, the proposed legislation places the burden on operators.
The proposal would apply several temporary surcharges between June 12 and July 20, but the sports wagering provision is likely to draw the most attention from New Jersey’s gaming industry.
Bill would add 10% surcharge to World Cup wagering
The legislation calls for “a surcharge on sums received by a casino or a joint sports wagering operation from online sports wagering on 2026 FIFA World Cup Tournament events” at a rate of 10%.
The surcharge would apply to New Jersey sports betting revenue after payouts to winning bettors are deducted, which means customers are not affected. The bill also applies the same 10% surcharge to horse racing permit-holders offering online sports wagering.
According to the bill, the surcharge would be applied specifically to World Cup matches and related props involving player statistics or portions of matches. Lawmakers defined a “2026 FIFA World Cup Tournament event” as:
“… a match or series of matches, or any portion thereof, among the 48 teams qualifying for participation in the 2026 FIFA World Cup Tournament, including, but not limited to, the individual performance statistics of athletes in a match or combination of matches.”
The additional tax would be separate from New Jersey’s existing tax structure. Operators would be required to pay the surcharge by Aug. 10.
Under the proposal, revenue generated from casino-affiliated operators would go into the Casino Revenue Fund, while money collected from racetrack operators would flow into the state’s General Fund.
World Cup expected to generate massive betting interest
The 2026 FIFA World Cup is expected to become one of the largest wagering events in New Jersey history.
MetLife Stadium in East Rutherford will host eight matches during the tournament, including the championship match. The expanded 48-team World Cup is projected to bring hundreds of thousands of visitors to the region.
New Jersey has long been one of the nation’s top sports wagering markets, routinely handling more than $1 billion in monthly wagers. Soccer has continued to grow in the state, particularly during international tournaments such as the FIFA World Cup, UEFA European Championship, and Copa América.
The proposed surcharge arrives as states across the country continue looking for additional gaming tax revenue. This comes on the heels of New Jersey raising the sports wagering tax from 13% to 19.75% last June.
New Jersey online casino tax also increased from 15% to 19.75%.
Additional hotel and entertainment surcharges included
Beyond sports wagering, the bill also proposes temporary surcharges on hotels, entertainment purchases, and rideshare trips connected to the Meadowlands area.
The legislation would impose:
- A 2.5% hotel occupancy surcharge statewide, excluding Atlantic City casinos, Monmouth, Ocean, and Cape May counties
- A 3% surcharge in the Meadowlands district on retail sales, prepared food, beverages, and amusement admissions
- A $0.50 surcharge on rideshare trips traveling to or from the Meadowlands district
The bill states the reasoning for the additional taxes:
“The revenue collected from the temporary surcharges is intended to support the costs of preparations for the hosting of the matches of this special event.”
The proposal also includes a tax credit provision allowing New Jersey residents to claim credits on their 2026 state income taxes equal to the temporary surcharges they paid as consumers.
S4111 was introduced May 4 and has not yet received a committee hearing.
Lawmakers against the bill
Two Republican lawmakers are not in favor of the tax hike that comes with hosting World Cup games. Before the bill had been formally introduced, Assemblymen Christopher DePhillips pointed out that Gov. Mikie Sherrill claimed she would not raise taxes for the event.
Assemblymen Al Barlas believes the tax hike sends the wrong message:
“Changing the rules of the game after the fact is wrong. Businesses made investments and commitments based on one set of expectations.
“Now Trenton wants to move the goalposts to cover its own spending. That’s a huge disservice to both large and small businesses already trying to survive under bad policy.”
Lawmakers have roughly six weeks to pass the bill before the World Cup begins. There’s also an identical bill in the Assembly, A4838.
