By Brittany Bonetti, Esq. and Ben Ojserkis, Esq.
At its meeting on October 22, 2025, City Council for the City of Atlantic City unanimously voted to adopt Ordinance No. 87 of 2025 (the “Cannabis Retailer Cap Ordinance”) which institutes a cap on cannabis retailers within Atlantic City.
The Cannabis Retailer Cap Ordinance establishes a cap of twelve (12) standard class 5 retail licenses and four (4) microbusiness class 5 retail licenses, for a total cap of sixteen (16) cannabis retailers permitted in Atlantic City. Surrounding municipalities, including Egg Harbor Township, are considering other measures to limit the number of licensed cannabis businesses within their jurisdiction. Additionally, the Casino Reinvestment Development Authority, which controls land use across a large portion of Atlantic City known as the tourism district, has proposed new draft rules which would institute buffer requirements on cannabis businesses including a required distance of at least 200 feet from any other cannabis business.
The Cannabis Retailer Cap Ordinance was based upon a study commissioned by Atlantic City. The study was not made available prior to City Council’s vote on the Cannabis Retailer Cap Ordinance and has only now been provided in a redacted form in response to an OPRA request.
The study, drafted by Stockton University Professor Rob Mejia, recommended that an “immediate cap of 16 dispensaries” be enacted “to stabilize the market and safeguard the viability of existing businesses.” The study notes that as of June 2025 there were 15 operating cannabis retailers in Atlantic City. The study also recommended that fully approved cannabis retailers, which have not yet opened, be grandfathered while setting firm timelines to open. Mejia’s report further recommended that the cap be re-evaluated periodically based on the market. As of the date of this article, there are a number of prospective cannabis retailers which have received local land use approvals and are in various stages of opening.
The study was based primarily upon a survey of current cannabis retailers in Atlantic City. Businesses, which are not yet operational but still actively moving through the approval process, were not surveyed. The study notes 100% participation in the survey from operating retailers in Atlantic City, with 80% of them being in favor of instituting a retailer cap.
While the study recommends grandfathering cannabis retailers that have already received “full approvals,” the Cannabis Retailer Cap Ordinance does not expressly contain grandfathering language. As of the date of this article, we are unaware of any proposed amendment to the Cannabis Retailer Cap Ordinance.
Notably, during its August 20, 2025 meeting, City Council issued five (5) new resolutions of support. As part of their State license application, prospective licensees are required to submit resolutions of support, which are meant to demonstrate proof of local support for the suitability of the location for the cannabis business.
Also, during its August 20, 2025, meeting, City Council passed Resolution 607 sunsetting all resolutions of support for cannabis businesses that had not had “substantial progress towards state licensure within the previous year.” In adopting Resolution 607, City Council noted that 47 resolutions of support for class 5 retailers had been previously issued, with 16 retailers successfully opening. No resolutions of support were adopted by City Council during its September or October 2025 meetings.
It is unclear what effect the Cannabis Retailer Cap Ordinance will have on cannabis businesses that are in various stages of the approval pipeline in Atlantic City and what substantial progress criteria Atlantic City will use in determining which resolutions of support will sunset. A number of cannabis retailers with previously issued resolutions of support have not yet opened. Others have progressed further—holding property and nearing final land use approval. Still others have obtained all land-use and State approvals and are currently building out their premises.
Click to view the Cannabis Retailer Cap Ordinance and the report by Stockton University Professor Rob Mejia.
Cooper Levenson’s Cannabis Industry Practice Group regularly represents cannabis businesses in Atlantic City and throughout New Jersey. If you believe you are impacted by the Cannabis Retailer Cap Ordinance or similar ordinances in other New Jersey jurisdictions and would like to evaluate your options, please reach out.
Brittany Bonetti, Esq., Partner and Chair of the Cannabis Industry Practice Group can be reached at (609) 572-7380 and bbonetti@cooperlevenson.com.
Benjamin Ojserkis, Esq. is a member of the Cannabis Industry Practice Group and can be reached at (609) 572-7550 and bojserkis@cooperlevenson.com.
The content of this post should not be construed as legal advice. You should consult a lawyer concerning your particular situation and any specific legal question you may have.