Lawmakers in New Jersey have officially put forward contentious legislation aimed at implementing temporary surcharges during the upcoming 2026 FIFA World Cup. This includes a proposed 10% surcharge on sports betting revenue linked to matches occurring during the tournament.
On May 4, Senator Paul Sarlo introduced Senate Bill 4111, while Representative Michael Venezia presented a corresponding bill, A 4838, in the Assembly. The intention behind this legislation is to help cover the expenses associated with hosting eight World Cup matches at MetLife Stadium, including the final scheduled for July 19, 2026.
The proposed bills outline four temporary surcharges that would be in effect from June 12 to July 20, 2026. The 10% surcharge on sports betting would be applicable to Atlantic City casinos, online sportsbooks, and horse racing permit holders that offer online betting. Furthermore, the bills define World Cup betting broadly, encompassing not only match outcomes but also individual athlete performance statistics, thereby including prop bets.
Additional surcharges proposed are as follows:
- A 2.5% surcharge on hotel occupancy
- A 3% sales surcharge on retail purchases, prepared food, alcohol, and amusement admissions within the Meadowlands district
- A $0.50 surcharge on rideshare trips originating from the Meadowlands area
Residents of New Jersey will be able to claim a state income tax credit in 2026 for the surcharges they incur. However, sportsbooks will not receive any equivalent credit for the betting surcharge.
The proposal has faced bipartisan criticism, with Representative Josh Gottheimer urging Governor Mikie Sherrill and legislative leaders to reconsider the initiative, stating that communities have not requested higher taxes. Other lawmakers have echoed concerns regarding the temporary tax increases.
Assemblyman Christopher DePhillips remarked that the governor previously indicated she would not raise the sales tax, which directly contradicts the current proposal. Additionally, Assemblyman Al Barlas expressed that businesses had already made plans based on different expectations surrounding the tournament.
As the deadline for passing these proposals approaches, members of the Senate and Assembly Budget Committees have called for urgent joint hearings with the NYNJ FIFA 2026 Host Committee to address taxpayer exposure, planning transparency, and potential cost overruns.
Lawmakers have highlighted the need for immediate legislative oversight due to the apparent disconnect between planning, public costs, and execution. Critics have also raised concerns about the practicality of refunding residents through tax filings instead of providing exemptions at the point of sale.
In response to the growing controversy, Governor Sherrill’s administration has defended the proposal as a necessary “tourism fee,” emphasizing that New Jersey residents should not bear the financial burden of hosting the World Cup.