Sports betting: New Jersey looking to get a cut of World Cup betting action
The state is trying to become the first to pass legislation to add a tax surcharge for wagering on a specific event
Bettors aren't the only ones looking to cash in on the 2026 FIFA World Cup. New Jersey legislators have introduced a bill that would add a tax surcharge on New Jersey betting for the World Cup to help offset the cost of hosting matches.
The bill would add a 10% surcharge on wagers involving any of the 48 World Cup teams from June 12 to July 20, pushing the effective tax rate for the state's online sportsbooks to nearly 20% on World Cup betting. The surcharge would include money line betting, Over/Under bets, spread betting and player prop betting markets.
Bettors would have the ability to claim a 2026 state income tax credit for the surcharges, but operators at sportsbooks and betting apps would not have an option to offset the revenue loss.
The surcharge is part of a broader bill that was introduced by Rep. Michael Venezia in the New Jersey Assembly last week. The proposal would also levy a 2.5% hotel fee, a $0.50 ride-share charge to and from the stadium and a 3% Meadowlands sales tax on food, drinks and purchase of goods in the district. The revenue would go to the state to help offset the high cost of hosting matches at MetLife Stadium, which local outlet northjersey.com estimated could cost the state more than $300 million.
The bill faces long odds in the New Jersey legislature, but proposals by Venezia and Sen. Paul Sarlom, who introduced a companion bill in the state Senate, have the support of Gov. Mikie Sherrill. She endorsed the idea of a World Cup "tourist tax" last month. With the start of the tournament less than one month away, the bill would need to be fast-tracked and there is significant opposition to tax increases of any kind in the state.
There are eight 2026 FIFA World Cup matches scheduled to be played at MetLife Stadium, including the tournament final on July 19. World Cup 2026 kicks off July 11 with two games -- Mexico vs. South Africa in Mexico City and South Korea vs. Czechia in Guadalajara, Mexico. There is one game in Canada and the United States opens its tournament in California on June 12, and the first match at MetLife is Brazil vs. Morocco on June 13.
New Jersey has allowed online sports betting since a Supreme Court victory in 2018, and top sportsbooks and betting apps like DraftKings, FanDuel, Bet365, Fanatics, BetMGM and Caesars Sportsbook operate in the state. Wagers can also be placed at any of the state's 12 casinos or its pari-mutuel facilities.
Spain and France are +500 co-favorites in the World Cup odds at DraftKings, followed by England (+650), Brazil (+800) and Argentina (+850). The USMNT is a +6000 longshot as the Americans get ready for their 2026 FIFA World Cup opener against Paraguay on June 12 at SoFi Stadium in Inglewood, California.
The World Cup is one of the biggest sports (and sports betting) events in the world. The American Gaming Association estimated that $1.8 billion was wagered by Americans alone for the 2022 FIFA World Cup. With the tournament in North America this time, betting interest is expected to far exceed that. Personal finance news outlet Kiplinger estimates that bettors -- many placing their first wagers -- could place bets of more than $150 billion worldwide on World Cup 2026.
If passed, the bill would be a landmark move as the first measure enacted by a state to impose additional taxes related to a sporting event. The move would set a precedent that could spur other states or cities that host big events like the Super Bowl or NCAA Tournament to explore similar measures.
