Season Two Premiere. Nucky is rocked by an insurrection among his inner circle; Chalky's life and livelihood are threatened by a vicious KKK attack; Margaret copes with her son's disciplinary problems; Angela vies with Gillian for Jimmy's affections at home; Van Alden shows his wife Rose around town as an anniversary present.
Concerned about losing his grip on Atlantic City, Nucky deliberates a countermove while trying to learn who betrayed him. Margaret strikes a pose from the past to help Nucky avoid further trouble in the present. In New York, Jimmy is put on hold by Arnold Rothstein, but Meyer Lansky and Lucky Luciano loom as possible trading partners.
With the Commodore putting the squeeze on Atlantic City's liquor shipments, Nucky reaches out to Washington's new Attorney General, Harry Daugherty, to return a political favor. In an effort to prove his worth, Owen intervenes on a delivery intended for struggling casino operator Lolly Steinman. Two sets of dinner guests clash at Babette's; and Lucy chafes at her loneliness.
Nucky's attorney has a legal brainstorm that could turn the tide in Nucky's election-rigging case. Facing a local liquor surplus, Jimmy and Mickey head to Philadelphia in search of buyers, while Nucky strikes an unlikely deal to get booze into Atlantic City. Eli frets over the Commodore's ability to lead; Owen puts his munitions expertise to work.
After paying lip service to his enemies, Nucky introduces a surprise guest speaker at a Memorial Day dedication for war veterans. With his options dwindling, Eli questions his allegiances, but ends up digging himself a deeper hole. Nucky gets a new lawyer; Jimmy is taught a painful lesson by a Commodore crony; Richard goes hunting deep in the forest.
Nucky orchestrates a risky liquor delivery in Philadelphia; Attorney General Daugherty faces a quandary that could complicate Nucky's case; Jimmy finds a new mentor in Leander Whitlock, the Commodore's longtime lawyer; Margaret confesses her sins; Lucy struggles in solitude, while Van Alden wrestles with his conscience.
While Nucky enlists heavyweight champ Jack Dempsey to promote the wireless broadcast of his upcoming fight, Jimmy faces a decision that could shape the future of Atlantic City. Margaret travels to Brooklyn for a bittersweet family reunion. Nelson weighs his options as his problems converge. Lucy visits an old flame for a handout. Owen settles a score.
In the wake of a personal loss, Nucky solicits advice on his political situation from Arnold Rothstein, while Eli remains suspicious of his brother's actions; Angela meets a new friend at the beach, and eavesdrops on her husband's treachery; Van Alden gets a nanny; Nucky approaches Owen with an overseas proposition; Jimmy flexes his muscles, at Mickey Doyle's expense.
Arriving in Belfast, Nucky and Owen meet with IRA leaders with a barter proposition. Meanwhile, in Atlantic City, Jimmy and his partners broker a deal with George Remus for his medicinal alcohol. Margaret frets when Emily's illness takes a turn for the worse; Dunn Purnsley orchestrates a worker's strike at the Ritz; Randolph and Lathrop grill Halloran about Nucky's past.
Undercut by Nucky, who has a new source for alcohol, Jimmy and his partners look to cultivate a new revenue stream in Atlantic City. With the peak tourist season approaching, the Commodore's crew faces a choice in dealing with the city's striking workers: to negotiate or to fight back. Margaret approaches Father Brennan fearing that sin has led to misfortune.
With Margaret pondering the consequences of sin, Nucky prepares her for a worst-case scenario as Esther Randolph plays out her trump cards. Jimmy revisits his college days with Angela and Gillian; Mickey Doyle chafes at sharing his liquor profits; Eli refuses to cop a plea; and Nelson's past comes back to haunt him, tipping the scale in Nucky's favor.
Season Two Finale. With Nucky's trial looming, Jimmy looks to make amends. After weighing an offer from Esther Randolph, Margaret makes a decision that will change the course of her future--and Nucky's.