A new bill would add an extra 10 percentage points to New Jersey’s sports betting tax rate on World Cup bets this summer.
Rep. Michael Venezia introduced AB 4838 this week, which creates multiple tax implementations for the global soccer tournament. Venezia aims to increase the NJ sports betting tax haul with the World Cup in the US this summer.
“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,” the legislation reads.
MetLife Stadium in the Meadowlands district will host eight games, including the World Cup Final, during the tournament this summer, June 12 to July 20. Sen. Paul Sarlo is leading the companion effort, SB 4111, in the upper chamber.
Offsetting costs with World Cup bets
Venezia hopes the new taxes can help offset the costs the state is spending to host the games. For World Cup betting, operators would have to pay 29.75% on revenue generated during the month.
Along with the 10 percentage point extra tax on bets on the tournament, Venezia also proposed new taxes on lodging, food and beverage, transportation and “tangible personal property.”
Other tax implementations include:
- 2.5% of rates for hotel and motel occupancy
- 3% on Meadowland’s district merchandise, food, drinks and alcohol.
- 50 cent surcharge for transportation to and from the Meadowlands.
World Cup sports betting revenue will go to the casino revenue fund, while the other taxes will go to the state general fund.
New Jersey tax increases
It would not be the first time lawmakers have increased taxes on sports betting. Last year, then-Gov. Phil Murphy proposed increasing sports betting and online casino tax rates to 25%.
Ultimately, the Legislature brought the increases down to 19.75%.
Initially, the NJ online casino tax rate was 15%, with sports betting at 13%.
