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Big Steve Halloway, a gambler and the owner of New York's Horseshoe Cabaret, where his girl, Bangles Carson, performs, is desperate for money. He arranges for his fellow bookies, particularly Sorrowful Jones, to each pay him $1,000 for his racehorse, Dream Prince, to lose. Sorrowful comes across a gambler who has lost $500 and wants to place a bet but is unable to come up with $20. Instead, he uses his daughter, Marthy Jane (Shirley Temple), as security, or as a "marker" in bookie parlance. After losing his bet, he commits suicide, leaving "little Miss Marker" in the care of Sorrowful Jones. While Steve hides out in Chicago to avoid being investigated for his shady bets, he entrusts Sorrowful with keeping an eye on Bangles during his absence, during which time the "gold digger" assists "tight-wod" with his problems. When Big Steve learns that Bangles is involved with Sorrowful, he returns to New York to take action.