However, a gang of criminals challenge the new licenses' policy and decide to commit heists to send a message to Cobblepot.
The episode opens with Bruce (David Mazouz) again on the roof of a building similar to the one at the close of the season 3 finale.
Zsasz (Anthony Carrigan) arrives and announces that they don't have Cobblepot's (Robin Lord Taylor) license authorization, which would allow them to commit crimes as long as they give half their haul to him.
Cobblepot negotiates with the newly appointed Mayor Burke (Larry Pine) and police commissioner and they agree to the licensing in exchange for a percentage of the cut.
After bribing the warden, Merton and his partner Grady (Michael Maize) visit Jonathan Crane (Charlie Tahan) in Arkham Asylum.
Merton and Grady bribe the Warden (Damian Young) to release Jonathan, who leaves a drawing in the form of a scarecrow.
Investigating the heist, Gordon tells Bullock (Donal Logue) that the victims' faces were coated with a substance that caused them to experience their worse fears, which is the same method Gerald Crane used.
Merton beat Gordan and Bullock and while they are laying on the floor, he explains their plan to send a message to Cobblepot regarding the licenses, and they leave.
Cobblepot throws a party to inaugurate his new club, the Iceberg Lounge and shows the attendees Nygma's (Cory Michael Smith) frozen body as a hall exhibition.
As the gang entered the club's kitchens, Cobblepot and Zsasz catch them and bring then in front of the party goers to exact a public punishment.
Mazouz also stated that he was worried the writers could pull back some aspects from Batman, deeming it "too fast" but he was glad it didn't stop.
"[11] Alexander Siddig stated that his character will seek to make Bruce his heir and will "do anything he can to get his hands on him, to manipulate him into what [Ra's] wants him to be."
In August 2017, it was announced that the guest cast for the episode would include Michael Buscemi as Merton, Larry Pine as Mayor Burke, Michael Maize as Grady Harris, Charlie Tahan as Jonathan Crane, Anthony Carrigan as Victor Zsasz, Damian Young as Warden Reed and Maggie Geha as Ivy Pepper.
Matt Fowler of IGN gave the episode a "good" 7.8 out of 10 and wrote in his verdict, "Gotham returned with a fun look at how much of the city's problem's could be solved with morally questionable outside-the-box thinking.
It's up to the show now to convince me, basically, that Jim has a leg to stand on with regards to his objections of having a staggeringly low crime rate and a city at peace.
"[21] Nick Hogan of TV Overmind gave the episode a 4 star rating out of 5, writing "Ultimately, Gotham is off to an interesting start.
And it's interesting to note that this incarnation of the Scarecrow is much closer to the comic book version, despite it being Dr. Jonathan Crane's son and not the professor himself.
Much like Swift hinted at her transition from a sugar-laced pop-singer into something angrier and more prone to shop at Hot Topic by declaring the Old Taylor was dead, young Jonathan Crane announced that he, too, has officially become something darker.
'"[26] Lisa Babick of TV Fanatic gave the series a 3.5 star rating out of 5, writing "'Pax Penguina' was a bit of a rocky start to the season, but there are good storylines that show promise; Bruce's being the most of exciting of all.
"[22] Robert Yanis, Jr. of Screenrant wrote, "Seasons 2 and 3 may have introduced some thrilling villain origins, but aside from that, its narrative has felt jumbled and erratic.
For as much fun as Penguin and company are, the real reason fans tune in to a Batman prequel is to see the character's evolution.
"[28] Laurence Mozafari of Digital Spy wrote, "Gotham season 4 has swooped onto screens, and as itty bitty Bruce Wayne continues his loooong transformation into the Batman, fans were treated to a new, acrobatic look at the young detective.