New Jersey Considers Adding World Cup Fee for Sportsbooks

Bettors in New Jersey could be in store for an unpleasant surprise next month.

New Jersey Assemblyman Michael Venezia has introduced A4838, which proposes surcharges in several industries during this summer’s World Cup, including sports betting. If passed, the state would add a 10% fee on all bets placed on the tournament for all mobile sportsbooks. It would also add fees for hotels, transportation, and sales from the area where New Jersey will host matches.

The new surcharges would take effect as soon as the bill is signed into law.

World Cup keeps getting more expensive

The new Assembly bill comes amid growing criticism over the costs of attending the World Cup. New Jersey Governor Mikie Sherrill is among those critics, blasting FIFA for not helping to foot the bill for things like transportation. She also shared frustration over delays in security funding from the league and the federal government, which wasn’t released until well after the promised date.

On top of the costs of getting to the stadiums where matches will be played, tickets have also been far more expensive than FIFA promised. Currently, fans can expect to pay $1,000+ just to get into the door of some New Jersey matches.

Venezia’s bill would further increase those costs, as the affected industries will pass the surcharges on to customers.

Sportsbook surcharge could hurt tax revenue

In theory, adding a 10% surcharge for wagers on the World Cup will generate critical tax revenue to help cover the hosting costs for New Jersey. However, in practice, it could have the opposite impact.

Sports prediction markets remain live and active in New Jersey and would remain unaffected by the surcharge. That means bettors looking to wager on the tournament will find cheaper betting options than they would from regulated sportsbooks. 

With operators like Kalshi and Polymarket expected to be aggressive in their marketing ahead of the tournament, the state could lose bettors if the proposed surcharge passes. Those bettors may not return to New Jersey’s regulated market once the tournament ends, resulting in a significant long-term financial impact.

Concerns over World Cup attendance remain

As confident as FIFA has been about the 2026 World Cup's attendance, there are a few reasons to question that confidence.

The first is the rising costs of attending the tournament. While many fans will have their tickets and travel figured out, they may not have factored in the continually rising costs of actually attending. If states like New Jersey continue to add more fees, some fans may be forced to sell their tickets.

Another reason is the current political situation in the US. International visitors fear aggressive immigration agents, who have not hesitated to detain people visiting the country legally in the past. That is especially true for fans visiting from Central and South America, who have been at the center of the controversial effort. Combine that with concerns over the US’s actions against Iran, and it may lead some fans to stay home.

FIFA continues to deny its fears over attendance, but the league has also canceled large blocks of hotel rooms for the tournament.