(AsiaGameHub) –   New Jersey lawmakers are moving forward with a proposal to temporarily increase taxes on sports betting linked to the 2026 FIFA World Cup as officials seek solutions to manage the rapidly rising costs of hosting the global event.

New Jersey Targets Sportsbook Revenue to Fund World Cup

The bill introduced in both houses of the state legislature by Democratic Senator Paul Sarlo and Assemblyman Michael Venezia would impose a 10% surcharge on online sportsbook revenue from bets placed on World Cup matches. The measure would take effect during the tournament next summer, when MetLife Stadium in East Rutherford hosts eight matches, including the final, according to Covers.

Under the proposal, the additional fee would apply to betting operators who are already subject to state gambling taxes. The definition of World Cup wagering would include not only traditional match bets but also player-related proposition wagers and other markets specific to the tournament.

Supporters argue that the temporary fees are essential to avoid placing the financial burden on residents associated with hosting one of the world’s largest sporting events. Funds generated from the betting levy, along with several other proposed surcharges, would be allocated to state coffers intended to help cover tournament-related expenses.

The broader package includes a temporary hotel occupancy tax, increased sales taxes within the Meadowlands district, and a small surcharge on rideshare services for trips related to the stadium area.

New Jersey Faces Backlash Over World Cup Funding Plan

Governor Mikie Sherrill’s administration has defended the plan, describing it as a tourism-driven funding mechanism rather than a permanent tax hike. State officials assert that visitors attending the World Cup should contribute to the operational and transportation costs tied to the event.

The proposal has already drawn criticism from lawmakers across party lines. Opponents claim the state is violating prior commitments not to raise taxes and warn that the added costs could impact businesses and consumers during a major international occasion.

Several legislators have also questioned whether the state has fully disclosed the public financial obligations tied to hosting the tournament. Concerns have focused on infrastructure investments, security operations, and transportation logistics.

The debate intensified after reports surfaced that NJ Transit might significantly raise transportation fares during the tournament. Round-trip train tickets between Manhattan and MetLife Stadium are expected to cost much more than standard rates, while shuttle services may also come with higher prices.

State officials estimate transportation costs alone could reach $50 million, with New Jersey bearing responsibility for transporting tens of thousands of fans for each match. Governor Sherrill has criticized FIFA for failing to provide funding to support transit operations.

Financial concerns surrounding the World Cup extend beyond New Jersey. Research from tax policy organizations indicates that host cities throughout the United States may face substantial public expenditures while FIFA retains most of the tournament’s revenue from sources such as ticket sales and concessions.

With the opening match less than two months away, lawmakers now face increasing pressure to determine whether the temporary surcharges represent a practical solution or an uncertain risk.