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New Jersey considering temporary World Cup sports wagering surcharge

Legal Writer

Publish Date: May 11, 2026

Fact checked by: Matt Moreno

Key Points

Bill adds 10% additional tax to revenue from wagers on World Cup matches and related proposition bets.
Surcharge would be in effect for the duration of the 2026 FIFA Men’s World Cup.
Licensed sportsbooks in New Jersey have yet to announce their plans for any adjustments they might make if the bill becomes law.

Members of the New Jersey Legislature have filed measures that would temporarily increase the state’s tax on revenue from sports wagers associated with the 2026 FIFA Men’s World Cup. If the change takes effect in time, licensed sportsbooks will face an additional 10% levy on their revenue from such bets.

So far, New Jersey is the only part of the United States that is considering a temporary surcharge to take advantage of the nation’s co-hosting the World Cup in 2026. Given the history of licensees’ reactions to tax increases, the cost could be passed onto bettors.

Lionel Messi of Argentina lifts the FIFA World Cup Trophy as he celebrates with team mates at the award ceremony following the FIFA World Cup Qatar 2022 Final match between Argentina and France at Lusail Stadium on December 18, 2022 in Lusail City, Qatar.

(Photo by Cui Nan/China News Service/VCG via Getty Images)

A4838/S4111 aim to help cover cost of hosting World Cup matches

Companion legislation in the New Jersey Assembly and Senate imposes temporary tax hikes in several regards related to the state’s upcoming hosting of 2026 World Cup matches. The increase in sports wagering tax is just one part of A4838 and S4111.

The passage pertinent for licensed sportsbooks in New Jersey targets World Cup wagers.

“In addition to any other tax, assessment, or use fee authorized by law, there is hereby imposed 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, less only the total of all sums actually paid out as winnings to patrons, in the amount of 10 percent, which shall be paid to the Casino Revenue Fund.”

The normal tax rate for adjusted sports wagering revenue in New Jersey is 19.75%. If the proposal becomes law, the rate on affected revenue would rise to nearly 30% for the duration of the surcharge period. That period is June 12 through July 21, 2026.

According to Nikita Biryukov of New Jersey Monitor, New Jersey Gov. Mikie Sherrill supports the temporary tax increases. She cited the plan as a way to “defray the cost of hosting the FIFA World Cup.”

MetLife Stadium in East Rutherford will host multiple matches. While the legislature only has weeks to get legislation to Sherrill for her approval, licensed sportsbooks in New Jersey also face a short time frame to determine how to react to the potential tax increase.

Sportsbooks’ Illinois adjustments could foreshadow New Jersey policies

New Jersey could be the first U.S. jurisdiction to impose a temporary sports betting tax hike connected to a specific event. However, this is far from the first tax increase that licensed sportsbook operators in the U.S. have faced.

One of the most controversial tax changes came in Illinois in 2025. That year, the state added a graduated per-wager surcharge.

In response, multiple online sportsbooks licensed in Illinois set new rules, like higher minimum wagers. For example, BetMGM increased its bet minimum for Illinois to $2.50.

So far, no licensed sportsbooks operating in New Jersey have commented on the potential for similar policy changes that could be in effect if the temporary tax hike does become law. However, it’s premature to make any announcements, especially considering the short amount of time that New Jersey lawmakers have to institute the increase.

Other than instituting bet minimums for World Cup wagers, it’s also possible that sportsbooks could account for the heightened tax with odds that are more favorable to their interests or limit the number and type of markets on the event. Another option is to limit the dollar value of the bets that they will take on World Cup action.

New Jerseyans could see a mixture of those reactions as well. Those choices for sportsbooks in the state will rest upon what happens in Trenton over the next month.

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