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Steve Halloway, gambler and operator of New York's Horseshoe Cabaret, where his girl Bangles Carson appears as a performer, is in severe need of financial assistance. It is he who arranges for his colleagues bookies, particularly Sorrowful Jones, to each pay him $1,000 if his racehorse Dream Prince fails to finish first in the race. As the bets are being placed at the window, Sorrowful comes across a gambler who has lost $500 and who wishes to place a bet but is unable to come up with the necessary funds of $20. Marthy Jane (Shirley Temple) is instead used as security, or in bookie's parlance, as a "marker," by her father. Sorrowful Jones takes care of "little Miss Marker" after he loses his wager and commits suicide as a result of his loss. "Gold digger" Sorrowful is left in charge of Bangles during Steve's absence in Chicago, where he is able to provide a helping hand to "tight-wod." When Big Steve discovers that Bangles is engaged with Sorrowful, he immediately returns to New York to take action against him.