New Jersey lawmakers formally introduced controversial World Cup surcharge bills that would add a temporary 10% levy on sports betting revenue alongside new hotel, sales, and transit fees tied to the 2026 tournament.
New Jersey lawmakers have formally introduced legislation that would impose temporary surcharges during the 2026 FIFA World Cup. Those include a temporary 10% surcharge on online sports betting revenue tied to tournament matches.
Sen. Paul Sarlo introduced Senate Bill 4111 on May 4. Meanwhile, Rep. Michael Venezia introduced companion bill A 4838 in the Assembly. The proposal is intended to help offset the costs associated with hosting eight World Cup matches at MetLife Stadium, including the tournament final on July 19, 2026.
What the Bills Would Do
The legislation would impose four temporary surcharges between June 12 and July 20, 2026, including a 10 %surcharge on sports bets tied to the tournament. The surcharge would apply to Atlantic City casinos, online sportsbooks, and horse racing permit holders offering online wagering.
The bills broadly define World Cup wagering to include matches and “individual performance statistics of athletes.” That means prop bets would also be covered.
The other surcharges include:
- A 2.5% hotel occupancy surcharge
- A 3% sales surcharge within the Meadowlands district on retail purchases, prepared food, alcohol, and amusement admissions.
- A $0.50 surcharge on rideshare trips involving the Meadowlands district.
The proposal allows New Jersey residents to claim a 2026 state income tax credit for the surcharges they paid. Sportsbooks, however, would not receive any comparable credit for the betting surcharge.
Bipartisan Backlash Forming
The proposal, which has circulated for weeks, has drawn bipartisan criticism.
Rep. Josh Gottheimer urged Gov. Mikie Sherrill and legislative leaders to reconsider the plan. In a letter, he said that communities have not asked for higher taxes.
Lawmakers also criticized the temporary tax increases.
In October, the governor said she would not raise the sales tax. That’s exactly what this does,” Assemblyman Christopher DePhillips, who sponsored a bill to lower state taxes, said.
Assemblyman Al Barlas argued businesses had already planned around the tournament under different expectations.
Changing the rules of the game after the fact is wrong,” Barlas said.
He pointed out the time constraints for passing and adopting the proposals before the first game in the state on June 13.
Separately, members of the Senate and Assembly Budget Committees, of which Barlas and Sarlo are members, called for immediate joint hearings with the NYNJ FIFA 2026 Host Committee regarding taxpayer exposure, planning transparency, and potential cost overruns.
In a letter to budget committee leaders, lawmakers said the Legislature and public still lacked “a clear and complete understanding of the commitments made on behalf of taxpayers.”
The lawmakers raised concerns about transit, security, infrastructure spending, and the risk of cost overruns.
The apparent disconnect between planning, public cost, and execution demands immediate legislative oversight,” the letter stated.
Critics have also questioned the practicality of reimbursing residents through later tax filings rather than exempting them at the point of sale.
Sherrill Defends Plan as Transit Pricing Controversy Grows
Sherrill’s administration has defended the proposal as a “tourism fee.”
The Governor has been clear: New Jerseyans shouldn’t have to bear the costs of hosting the FIFA World Cup,” spokesperson Maggie Garbarino said.
Sherrill has argued the state needs to recover costs associated with hosting the tournament while avoiding burdening regular commuters and taxpayers.
We’re looking to make sure we can defray the cost of hosting the FIFA World Cup … and ensure that New Jerseyans don’t pay for it. This is a tourism fee,” Sherrill said during a WNYC appearance.
The cost debate intensified after reports of an expected increase in transportation ticket prices emerged. NJ Transit plans to charge $150 for round-trip train tickets from Manhattan’s Penn Station to MetLife Stadium during the tournament, more than 10 times higher than the normal $12.90 fare. Shuttle bus tickets will reportedly cost $80.
Sherrill blamed FIFA for failing to contribute transportation funding, saying her administration inherited an agreement under which FIFA would contribute “$0” toward transit costs. At the same time, she says the state faces a $48 million price tag to transport roughly 40,000 fans to and from every game.
Sherrill said FIFA should pay for transportation, but if it refuses, she would not allow the costs to fall on New Jersey commuters.
FIFA has pushed back, saying host cities had long been aware transportation would be provided “at cost” rather than free.
FIFA Revenue Debate Adds to Pressure
The New Jersey fight reflects broader concerns about the economics of hosting the 2026 FIFA World Cup.
According to the Institute on Taxation and Economic Policy (ITEP), host cities will lose millions in tax revenue through FIFA-related exemptions while bearing high public costs.
ITEP estimated that Georgia could lose up to $25 million in state and local revenue from games in Atlanta. Meanwhile, Missouri could lose more than $11 million from games in Kansas City, while Florida could lose about $7.4 million from games in Miami.
Additionally, ITEP estimated that host cities will spend between $100 million and $200 million on infrastructure, security, and logistics.
Reporting from ProPublica, the Houston Chronicle, and The Texas Tribune similarly found that host cities are responsible for major operational costs. The report estimated that U.S. taxpayers could be on the hook for roughly $625 million in World Cup-related expenses.
At the same time, FIFA retains most game-day revenue streams, including ticket sales, concessions, and parking. The organization is expected to earn about $11 billion from the World Cup.
Everybody signed an agreement that was very, very one-sided,” former U.S. Soccer president Alan Rothenberg told the outlets.
With the tournament about a month away, New Jersey lawmakers now face mounting pressure to balance World Cup-related costs against growing backlash over taxes, transit pricing, and taxpayer exposure.
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