Big Steve Halloway, a gambler and owner of New York's Horseshoe Cabaret, where his lady, Bangles Carson, performs, is starving for money. He arranges for his colleagues bookmakers, particularly Sorrowful Jones, to pay him $1,000 apiece for the loss of his racehorse, Dream Prince. With all bets put at the window, Sorrowful comes across a gambler who has lost $500 and is unable to come up with $20 to place his stake. Rather than that, he uses his daughter, Marthy Jane (Shirley Temple), as collateral, or in bookie parlance, a "marker." He commits suicide after losing his wager, leaving "little Miss Marker" in the care of Sorrowful Jones. While Steve is hiding out in Chicago to avoid being investigated for his shady wagers, he entrusts Sorrowful to look after Bangles during his absence, during which time the "gold digger" assists the "tight-wod" with his problems. When Big Steve discovers Bangles' involvement with Sorrowful, he returns to New York to take action.