New Jersey Lawmakers Want to Slap a 10% Tax on Sports Bets to Pay for the 2026 World Cup

New Jersey is one of the biggest sports betting markets in the country, and lawmakers there want to use that volume to help pay for the 2026 FIFA World Cup. A bill introduced by State Senate Budget Chair Paul Sarlo would impose a temporary 10% surcharge on online sports betting revenue earned from World Cup wagering, adding to a package of fees and tax hikes tied directly to hosting matches at MetLife Stadium in East Rutherford this summer. The proposal is a direct shot at bettor value in a market that already saw its online sports betting tax rate nearly double in 2025.

What the Bill Actually Does

The Sarlo bill targets multiple revenue streams simultaneously. In addition to the 10% surcharge on World Cup-related sports betting revenue, it would impose a 3% increase in the state sales tax in the Meadowlands region, a 2.5% hotel surcharge across most counties, and additional fees on rides to and from MetLife Stadium. The sports betting surcharge would run through August 10, the projected end of the World Cup tournament. The sales tax increase in the Meadowlands district would expire on July 21.

The stated purpose is to fund the security, infrastructure, and transit costs that come with hosting a global sporting event of this scale. New Jersey is one of several host cities for the tournament, which will feature games at MetLife through the group stage and potentially into the knockout rounds. State Democrats who support the measure argue that the businesses and sectors that benefit most from the World Cup should contribute to the costs of hosting it.

Why Bettors Should Care

For sports bettors, the 10% surcharge sits on top of an already elevated tax environment. New Jersey permanently raised its online sports betting tax rate to 19.75% effective July 1, 2025, up from 13%. That rate already ranks among the higher tax rates in the country for legal online wagering. Layering an additional 10% surcharge on top of that — even temporarily — gives sportsbooks operating in New Jersey a meaningful incentive to adjust pricing to compensate during the World Cup window.

When operators face higher taxes or fees, the costs generally flow through to bettors in the form of slightly worse odds, reduced promotions, or smaller bonuses. The World Cup is one of the highest-volume betting events of any year. If you plan to wager on matches through New Jersey sportsbooks, expect the competitive edge that normally pressures books to offer sharp lines to be somewhat muted while the surcharge is in effect.

The Opposition

Not everyone in Trenton is on board. Republican Assemblymen Christopher DePhillips and Al Barlas came out against the proposal immediately, calling it a short-sighted tax grab that reinforces New Jersey’s reputation as a high-tax state at exactly the wrong moment. DePhillips, the Assembly Republican Conference Leader, noted that Governor Mikie Sherrill had said in October that she would not raise the sales tax — and argued that the Meadowlands surcharge does exactly that. He and Barlas are calling on the governor to reject the legislation outright.

The political calculus here is interesting. New Jersey Democrats control the Legislature and sponsored the bill, but the governor’s earlier pledge creates a potential veto point. Whether the World Cup provides enough political cover for Sherrill to sign it — or whether she uses the Republican opposition as reason to block it — will shape whether this surcharge actually hits bettors come June.

The Bigger Picture

New Jersey is not alone in looking at sports betting revenue as a fiscal tool tied to major events. The broader trend across multiple states has been to treat legal wagering as a relatively painless source of incremental tax revenue, particularly when the tax is framed as temporary or tied to a specific occasion. The problem is that temporary surcharges have a way of lingering, and the cumulative effect of rate increases over recent years has meaningfully changed the tax landscape for legal sportsbooks operating in the Northeast.

New Jersey handled a substantial volume of legal sports bets in 2025 despite the tax increase that took effect in July. The World Cup is expected to drive enormous wagering interest, particularly given the US men’s national team’s participation as a host nation. But if the surcharge passes and operators pass costs along, bettors in New Jersey could find that the best lines on group stage matches are available at books in neighboring states or on apps that carry lower cost structures. Shopping lines across legal platforms will matter even more than usual this summer if this bill becomes law.