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As the owner of the Horseshoe Cabaret in New York City, Big Steve Halloway is a gambler and a good friend of the girl he sings with, Bangles Carson. He needs money. His fellow bookies, especially Sorrowful Jones, each pay him $1,000 for his racehorse, Dream Prince, to lose so that he can keep the money. A gambler who has lost $500 wants to bet $20 but can't come up with the money. Sorrowful sees him and tries to help him. When he doesn't have enough money, he puts his daughter, Marthy Jane (Shirley Temple), as a "marker." Having lost his bet, he takes his own life, leaving "little Miss Marker" in the care of Sorrowful Jones, who is sad. The "gold digger" helps the "tight-wod" when he needs help. Steve hides out in Chicago to avoid being caught for his crooked bets, so he asks Sorrowful to watch Bangles while he's away. When Big Steve finds out that Bangles is involved with Sorrowful, he goes back to New York to do something about it.