- Special Agent Polk gets off the phone and tells Lt. Snyder that apparently Henry Gondorff is conning some big shot from New York.
- So Polk wants Snyder to drag Lonnegan out of the betting parlor as soon as the cops bust in. Polk doesn't want the media to be all over this bust and he doesn't want some New York jerk making it a huge news story.
- Remember: this is a shady deal with a payout for the cops, etc. Any media attention is a no-no.
- Back in the fake betting parlor, Henry sees his hired gunman and Johnny come in together. He and Johnny share a knowing smile.
- A buzzer rings in the parlor and the con men all take their positions.
- Across the street, Lonnegan sits in a diner with his money briefcase and gets his next tip on the phone. He heads quickly across the street to place his bet and the con men get ready for him.
- Lonnegan marches right in and puts half a million on Lucky Dan to win his race. The dude behind the betting booth acts stunned and says he'll have to get the manager.
- Moments later, Henry-as-Shaw walks over and asks Lonnegan what his problem is. He says he won't take the bet, but Lonnegan calls him gutless and Henry-as-Shaw takes the bet.
- After the bet, Lonnegan sits down and listens to the race results. From the corner of the room, Twist enters dressed as the agent from Western Union. He goes to sit beside Lonnegan and asks him how things are going.
- When Lonnegan says he put the money on Lucky Dan to win, Twist freaks out and says he told Lonnegan to put the money on Lucky Dan to place, not win.
- Lonnangan flips and runs over to the betting booth to get his money back. At this point, the FBI busts in and tells everyone to stay where they are.
- Special Agent Polk walks over to Henry and Johnny and tells Johnny he can go. At this moment, Henry looks over and realizes that Johnny has betrayed him.
- He pulls a gun and shoots Johnny in the back just before Polk pulls his revolver and guns him (Henry) down.
- Dang.
- Lonnegan and Lt. Snyder stare in disbelief at Johnny's dead body. Polk orders Snyder to get Lonnegan out of the parlor and Snyder takes off with him.
- After Lonnegan and Snyder are gone, Polk walks over to Johnny and tells him that they're gone.
- Johnny opens his eyes and pops back up to his feet because the whole FBI sting thing was part of the big con.
- This is how they managed to get Snyder and Lonnegan to both believe that Henry and Johnny were dead, which means neither of them will ever come after our boys.
- Everybody in the parlor starts laughing and cheering. Henry orders them to tear down the bar quickly so there will be no trace of the thing by the time any cops come back.
- Johnny gets ready to go and Henry asks him if he's going to stick around to collect his share.
- But in Johnny's words, "I'd only blow it." So after all that, he's not even interested in the money. He just wanted to ruin Lonnegan.
- The movie ends with a shot of Henry and Johnny walking away together down an alley.