New Jersey Rep. Michael Venezia wants to generate additional tax revenue for the Garden State by charging residents to place 2026 FIFA World Cup bets.
Venezia introduced Assembly Bill 4838 on Monday, proposing a series of temporary surcharges on certain transactions for this year’s World Cup. The bill does not yet contain a financial impact estimate of how much the World Cup betting tax could raise.
The tournament will run from June 11 through July 19, with New Jersey hosting eight matches for the month-long event. New Jersey is hosting the World Cup final match on July 19 at MetLife Stadium.
AB 4838 could serve as a landmark bill for New Jersey and U.S. states, as its approval would make it the first measure to impose a temporary surcharge for a sporting event. The concept enjoys the support of Gov. Mikie Sherrill. who endorsed World Cup taxes last month.
“The revenue collected from the temporary surcharges is intended to support the costs of preparations for the hosting of the matches of this special event that will take place in New Jersey,” reads a statement provision included in Venezia’s measure.
World Cup bets bill would add 10% tax in New Jersey
Under AB 4838, the New Jersey Division of Gaming Enforcement imposes a 10% temporary surcharge on online wagers placed on all World Cup tournament events. The additional tax applies to “any match or series of matches” for all 48 teams in the event.
The surcharge extends to moneyline, total, spread and player prop betting markets. Revenue generated from the surcharge is allocated toward the Casino Revenue Fund.
AB 4838 has been referred to the Assembly Agriculture and Natural Resources Committee. The Senate is also considering a companion measure, Senate Bill 4111.
The legislative effort in the Senate is led by Sen. Paul Sarlo.
New Jersey tax requirements for online wagering
Venezia’s proposed World Cup surcharge would add to New Jersey’s existing 19.75% tax rate on online casino gaming and sports betting. Last year, New Jersey’s legislature and former Gov. Phil Murphy agreed to that 19.75% tax rate on gross gaming revenue after Murphy previously proposed raising the tax rate on iGaming and sports betting to 25%.
Before New Jersey implemented a 19.75% tax rate on online gaming, the Garden State taxed sports betting at a 13% rate, while online casinos in the state were taxed at 15%.
If AB 4838 is enacted, online sports betting would be temporarily taxed at a 29.75% rate.
Hospitality, entertainment sectors also face surcharge
The bill also aims to generate tax revenue through additional surcharges in New Jersey. Other surcharges that AB 4838 proposes to implement during the World Cup:
- A surcharge of 2.5% for certain hotels on “the rent for every occupancy of rooms”
- 3% surcharge on the sale of prepared food, soft drinks and alcoholic beverages, as well as for every sale within the district of tangible personal property
- A surcharge of 3% is also applied for an “admission charge to a place of amusement”
- Rideshares also face a 50-cent surcharge for every prearranged ride originating in the state
AB 4838 requires the surcharges to be collected by the Department of the Treasury’s Division of Taxation. The measure also provides a provision that addresses tax credits.
“Under the bill, an individual taxpayer may claim a gross income tax credit for taxable year 2026 in an amount equal to any of the three surcharges that are actually paid by the individual,” reads AB 4838. “However, this tax credit may only be claimed by individuals who are customers subject to the surcharge, not businesses that are required to collect the surcharge from customers.”
Mixed feelings about potential World Cup bets tax
Lawmakers in New Jersey will have to move quickly with advancing AB 4838 with the highly anticipated global soccer tournament taking place next month.
Sherrill is endorsing the temporary surcharges, while Rep. Josh Gottheimer voices his opposition to the proposed tax increases for the World Cup.
“People in our state are already stretched too thin, and we should not ask them to cover even more costs tied to the FIFA World Cup,” said Gottheimer in a letter to Sherrill and other key government stakeholders in New Jersey. “New Jersey taxpayers should be excluded from all fare hikes and tax increases related to the games”.
Gottheimer is against the surcharges as vice chair of the FIFA World Cup 2026 Caucus.
“Hosting the World Cup is an incredible opportunity, and I have no doubt our state will shine under the spotlight,” continued Gottheimer. “But we must ensure that success does not come at the expense of families and small businesses.”
