Public money has been poured into the official "Party Central" on Queens Wharf, but the pubs and restaurants closest to Eden Park have had to pay thousands of dollars just for approval to operate on match nights.
Liquor licences needed to be extended because World Cup spectators will leave the stadium as late as midnight.
Papa's Pizza, just across the road from the stadium, was turned when it applied for an extension until other businesses farther afield rallied around it.
Owner Gail Hunter said she had expected support, not resistance.
Mr Lines said plans to put on a street festival and extra hospitality were also shot down, despite support from neighbours and customers.
Kingsland would need to absorb thousands more people than its current capacity, but businesses had been "strongly advised" that bylaw breaches would not be tolerated.
"This places businesses in jeopardy, it causes stress, and it's an untenable position," Mr Lines said.
"Can you imagine the frustration of a group of rugby supporters ... being kept out in the cold because a restaurant or bar has reached its capacity?"
He said he wanted to see a clear directive from a civic leader.
"All I ask is my government and council allow me to be the best I can be and do the best I can do."
A 500m "clean zone" imposed by the International Rugby Union has ruled out street stalls - though the council has said it will take a "relaxed approach" to enforcement.
Neighbour Katie King said she still wanted to put on a barbecue if possible, while nearby resident Rob Cobb said the potential penalties made it too difficult.
But if the people around the actual stadium have been locked out, those officially enlisted to become the virtual stadium of four million are enthused.
Jeanna Love, organiser of Rotorua's Tribal Rugby Festival, said there had been some hoops to jump through to get officially recognised, but the tournament was be a once-in-a-lifetime opportunity.
"This feels like this is us. This is ours," Ms Love said.
Mayor Len Brown said he had set up a task force on Eden Park and the World Cup as one of his first acts as mayor, and it would meet regularly.
"My reason for providing that leadership was to ensure we fulfil the potential of the event for all of Auckland," Mr Brown said.
"This is a once-in-a-generation opportunity to put Auckland on the world map."