The state of New Jersey has announced it is accepting applications for sportsbetting licenses with plans to issue the first licenses by January 9, 2013.
The state's Division of Gaming Enforcement recently published regulations for sportsbetting which include limiting bets to the Atlantic City casinos and the state's four horse racing tracks.
Restrictions will also be put in place that ban betting on sporting events held in New Jersey, similar to what sportsbooks in Nevada currently do.
The move may be slightly premature, however, as sportsbetting is currently banned by federal law in all states except for Nevada, Oregon, Delaware and Montana.
Each of these states received an exemption when the Professional and Amateur Sports Protection Act was passed in 1992.
With the blessing of Governor Chris Christie, New Jersey has essentially defied the ban and moved forward with its own plans to offer sportsbetting.
A bill passed in a referendum by a wide majority and signed into law by Christie in early 2012.
Christie has acknowledged that the move to offer sportsbetting -- primarily motivated to prop up the state's sagging gambling industry largely located in Atlantic City -- might not be a smooth ride:
"Am I expecting there may be legal action taken against us to try to prevent it? Yes. But I have every confidence we're going to be successful."
The legal uncertainty may impact how many casinos and racetracks apply for a license to offer sportsbetting.
Some casino executives have stated that they're hesitant to invest in building and opening sportsbooks with the possibility of the federal government stepping in and shutting them down once they open their doors.