<p>This paper examines the impact of hosting the FIFA World Cup on foreign direct investment (FDI), focusing on the moderating role of institutional quality, using panel data from 195 countries between 1960 and 2023. The study is motivated by Morocco’s successful bid to co-host the 2030 FIFA World Cup with Spain and Portugal, which has sparked debates on the economic benefits and potential risks of hosting mega-sports events. While such events can attract significant investment, they also pose challenges, particularly for countries with weak institutional frameworks, where investments may become “white elephants”. The findings suggest that countries with stronger institutional quality are more likely to realize the economic benefits of hosting the World Cup, while those with weaker institutions may experience limited returns, falling victim to the “winner’s curse”. This scenario often leads to substantial infrastructure investments that do not translate into long-term economic growth. The study underscores the importance of strengthening institutional frameworks to mitigate these risks. Policy recommendations emphasize the need for prospective host countries to prioritize anti-corruption measures, enhance regulatory frameworks, and ensure political stability. By addressing these institutional challenges, countries can maximize the potential economic gains from hosting mega-sports events like the FIFA World Cup.</p>