- Main article: Arnold Rothstein
- Main article: Resolution
Nucky and Margaret Thompson plan a lavish Egyptian themed party on December 31, 1922 to commemorate the new year. Nucky invites his bootlegging contacts from New York, including the volatile Sicilian gangster Gyp Rosetti.
Just before midnight Nucky assembles his bootlegging contacts in the kitchen. He tells them that because of the attention on the Harding administration he is going to be supplying Rothstein exclusively. Rosetti is incensed and delivers a tirade of abuse at Nucky and his associates, calling Rothstein a midget, before storming out. ("Resolution")
- Main article: Spaghetti and Coffee
Nucky heads to Rothstein's house to find out more about Daugherty's middleman Gaston Means, after meeting him for the first time. Rothstein says that he is infamous as a big personality but asserts that it is still worth paying Daughterty for protection despite the corruption accusations against him. They discuss details for the upcoming shipment and Rothstein catches Nucky making a mistake over the scheduling. Rothstein blames Nucky's distraction on his relationship with Billie and gently warns that she is a "vivacious young woman".
- Main article: Bone for Tuna
Nucky attempts to resolve the feud with Gyp but inadvertently insults him. Gyp vents his anger by murdering Victor Sickles, the corrupt Sheriff of Tabor Heights who was on Nucky's payroll. ("Bone for Tuna")
- Main article: Blue Bell Boy
The feud continues to prevent Rothstein's liquor arriving. He is unable to reach Nucky so he angrily calls Mickey Doyle to chase up his delivery. Mickey tries to send a convoy through Tabor Heights and they are massacred by Gyp's men. ("Blue Bell Boy")