Abú, un ladronzuelo que actúa por las calles de Bagdad, es detenido y encarcelado. Comparte la celda con el príncipe Ahmad, legítimo heredero del trono de Bagdad, a quien el Gran Visir Jaffar ha encarcelado para arrebatarle el poder.
Leon de Severac is fed up with his daughter Jacqueline, who is constantly seducing men. Hoping to discourage her from her flirtatious behavior, he tells her the story of Zareda, an attractive fortune teller who is having an affair with Ivan de Maupin.
A poor chap, with only fifty cents, hesitates whether to buy a meal with it or visit a fortune teller. He chooses the latter, and gazing into a crystal globe, he is told to follow the horses. He is then shown working around a racing stable, and, of course, rides the heroine's horse to victory. That night they decide to celebrate in a cabaret, where several amusing complications ensue.
The action takes place in a gum factory. By a peculiar accident, a bootlegger attempting to avoid the keen eye of an officer of the law, holds a bottle of liquor so that its contents drop into a vat in which the gum is being prepared. It is when the gum is finished and ready to chew that the riot starts.
