New Jersey Lawmakers Consider Surcharge for World Cup Wagers

The Garden State will serve as one of the hosts for next month’s 2026 World Cup, and some lawmakers are looking to cash in.

The state Assembly is currently reviewing AB 4838, which proposes to add a 10% surcharge on all World Cup wagers, marking a significant shift for the New Jersey sports betting market. This would be on top of the annual 19.75% tax rate sportsbooks are subject to. The goal is to capitalize on the influx of visitors and the massive volume of fans looking to bet on the latest World Cup winner odds throughout the tournament, generating tax revenue to help cover the high costs of hosting matches.

If passed, the bill would also add the following temporary taxes for the tournament:

• 10% on each World Cup wager accepted by mobile sportsbooks

• 2.5% tax for all hotel and motel rates

• $0.50 fee added to transportation to and from World Cup matches

• 3% tax on receipts from sales of purchases from the Meadowlands District

While the surcharge would also affect New Jersey residents, the bill allows them to deduct those fees from their 2026 state taxes.

New Jersey is set to host eight matches, including the World Cup Final, in its Meadowlands District. 

Will Gov. Sherrill Support the Proposal?

The new proposal comes shortly after New Jersey Governor Mikie Sherrill began expressing concerns about the mounting costs of attending World Cup matches in the state. She has publicly ripped FIFA for misleading fans about costs, and is taking action to help lower them locally before June’s kickoff.

Sherrill’s previous statements make it hard to see her supporting AB 4838, but other factors could change that.

One of the biggest storylines around the 2026 World Cup is the lack of hotel reservations. While FIFA has assured the world that the tournament is sold out, hotels and motels aren’t seeing the corresponding bookings. 

This has led to a growing fear that international fans either can’t afford or don’t feel safe attending matches in the US. If true, that means fewer visitors and less money for local businesses, who have made significant investments for the tournament. It would also result in the state failing to cover the debts from its hosting duties, leading to long-term economic impacts.

By adding the proposed taxes, New Jersey can better protect itself if FIFA’s attendance projections fall short.