Atlantic City Continues to Battle Illegal Cannabis on Boardwalk Despite Legalization

Atlantic City, N.J. — Despite official promises to enforce a strict no-smoking policy for cannabis on the Boardwalk, the presence of marijuana smoke and illicit sales remains widespread. Since New Jersey voters approved adult-use cannabis in 2020, expectations were high that the new market would generate significant tax revenue, create jobs, and address social justice concerns. Yet, the cannabis industry has yet to fully deliver on these goals. The state’s legal cannabis market remains constrained by local restrictions and state policies that impose significant hurdles on licensed businesses. As a result, illegal cannabis sales continue to thrive alongside the regulated market.  Currently, approximately 250 licensed cannabis retailers operate across New Jersey, but only about one-quarter of municipalities allow cannabis shops. This has led to many licensed stores being concentrated in a few urban centers such as Atlantic City, Camden, Newark, and Jersey City, leading to crowded markets in these areas. In Atlantic City, the Casino Reinvestment Development Authority supports over 40 cannabis businesses within its designated Green Zone. However, this saturation has not eliminated the black market, which remains active on the Boardwalk and surrounding neighborhoods. Concerns have been raised that proposals to raise cannabis taxes could inadvertently encourage illegal sales, further complicating efforts to control the market and enforce public consumption rules. The ongoing challenge of managing both legal and illegal cannabis highlights the difficulties faced by Atlantic City in regulating use and protecting public spaces.