The Atlantic City Council postponed its decision Monday night on a proposed ordinance that would cap the number of cannabis dispensary licenses in the city, opting instead for more research and public input before taking a final vote.
The proposal, introduced earlier this month, sought to limit cannabis retail licenses to 16 total—12 full licenses and 4 micro-licenses—in an effort to prevent oversaturation. But after hours of discussion, council members voted to delay the decision until city staff can provide a detailed report on potential market impact, neighborhood effects, and comparisons with other New Jersey municipalities.
A Push for Balance
Supporters of the cap argued that without limits, the local cannabis market could quickly become overcrowded, hurting small businesses and potentially leading to empty storefronts. Some local business leaders compared the city’s fast-growing cannabis scene to previous “boom-and-bust” cycles in Atlantic City’s gaming industry.
“We need a sustainable approach, not a race to the bottom,” said one council member during the meeting. “A little patience now could save a lot of problems later.”
However, several prospective dispensary owners and social-equity advocates pushed back, saying a strict limit could freeze out minority entrepreneurs and restrict consumer access in certain parts of the city. They also pointed out that delivery-only services would remain exempt from the cap, which they argue could give larger operators an unfair advantage.
Concerns and Next Steps
Council members requested additional data before making any binding decision—specifically, a breakdown of existing license approvals, tourist demand projections, and retail zoning maps. The New Jersey Cannabis Regulatory Commission (NJ-CRC) has continued approving new retail and lounge endorsements in Atlantic City, adding urgency to the council’s deliberations.
City staff are now tasked with preparing a market analysis that will compare Atlantic City’s cannabis density to other cities such as Trenton, Newark, and Jersey City. The report will also assess how many dispensaries the city can support given its tourism traffic, population size, and commercial zoning limitations.
The council plans to revisit the ordinance at its mid-November session, where it may amend or finalize the proposal depending on the findings.
What It Means for Businesses
The postponement leaves cannabis entrepreneurs in limbo. Some operators say the delay provides valuable time to refine their applications and find suitable retail spaces, while others worry that ongoing uncertainty could slow investment and leasing activity across the city’s commercial zones.
If enacted, the cap would apply only to retail locations, not to delivery or manufacturing operations. Industry observers suggest this could create an uneven playing field, with well-capitalized companies more easily able to pivot into delivery models while smaller local applicants face tougher barriers to entry.
A City in Transition
Atlantic City continues to position itself as a destination for both tourism and cannabis culture, especially as consumption lounges and new retail experiences emerge. However, city leaders appear intent on ensuring that cannabis growth aligns with the broader economic and social goals of the community.
For now, the debate underscores Atlantic City’s ongoing effort to balance economic opportunity with long-term stability in the rapidly evolving cannabis market. The council’s next meeting could determine whether that balance comes through tighter controls—or continued expansion.
The Atlantic City Council is expected to revisit the cannabis licensing cap proposal in November following its staff review and public hearings.