They are getting emboldened by some wins in lower courts in NH. And that area of NH is particular bad for some reason (Assuming they are near you in or around Rindge). I don't know NH law well enough to know if it's legal as per state law, but there are likely some constitutional issues with it, and not based in the 2A. See Tennessee Wine & Spirits Retailers Assn. v. Thomas. BTW: That case isn't on point, but reflects the EP issues surrounding this type of exclusionary law. Also, if they have an existing license, there is a property interest in the continuation of the license (and I don't think that NH has foreclosed that like the MA SJC has). They should not give in on this.