Six months after the chaotic events of Batman: Arkham Asylum, both the Elizabeth Arkham Asylum for the Criminally Insane and Blackgate Prison remain gutted, the former in a massive breakout launched by the inmates, lead by the Joker and the latter due to a mysterious fire, which the Joker hints was caused by him for his plans in Arkham Asylum.


The administrator of Arkham, mayoral candidate Quincy Sharp, soon takes advantage of Batman’s defeat of the Joker at Arkham and claims the credit himself for bringing the asylum back under control, perhaps saying Batman was working under his orders. This is partially to salvage his image, in tatters after the single worst asylum riot took place at a crucial time when Sharp was trying to convince the people of Gotham City to vote for him.


One year after the events of Arkham Asylum, Bruce Wayne is holding a press conference discussing the danger of the Arkham City super-prison, calling it unsafe for the people of Gotham. However, Hugo Strange, the mastermind of Arkham City, is one step ahead and sends TYGER operatives to arrest Bruce as well as the press reporters covering the press conference, and have them all imprisoned within Arkham City.