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New Jersey fights for permission to allow new businesses

When people are trying to start a new business in New Jersey there are many considerations that need to be made. In most cases, business formation issues are much more complex than just picking a location and hiring employees. Business start-ups need to consider their legal entity form and deal with any regulatory compliance issues.

In some cases properly dealing with governmental agencies can be essential to getting a new business off the ground. Without the right permits, licenses and other permissions a business may not be able to legally open at all.

Recently the state of New Jersey has been fighting the federal government for the opportunity to attract a new type of business to New Jersey — sports betting. Under the 1992 Professional and Amateur Sports Protection Act sports betting in the United States was outlawed in all but four states. Under the law, four states, including Nevada, were grandfathered out of the law since they already had forms of sports betting set up within their states.

New Jersey is now hoping to restore and renew its horse racing and casino industries by getting permission to allow gambling on sporting events. The state argues that this law violates the 10th Amendment to the United States’ Constitution by denying equal protection to all the states since some states are treated different under the law.

Currently the case is being heard in U.S. District Court; however, experts are expecting these proceedings to be appealed to the 3rd U.S. Circuit Court of Appeals and maybe up to the United States Supreme Court. The NCAA and four of the national professional sports leagues all oppose New Jersey in the action.

If New Jersey is successful in winning its bid to allow sports betting, new businesses could flourish. However, like any business, without governmental permission to operate, if New Jersey loses, the businesses won’t be allowed to open.

Source: Las Vegas Review Journal, “New Jersey makes bid to revive casino and horse racing,” Feb. 15, 2013

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