Judy finds Tracey crying in her cell and tries to comfort her. Tracey asks her to talk to Bea and explain that she was set up. She also tells Judy about the threats sent in via Kath. Lizzie and Judy plot to stop Kay taking over as top dog and decide to undermine her gambling racket. Linda tells them she's only working for Kay because she needs the money, but also partly because she's scared of her. Vera gets a threatening phone call while she is on night duty telling her to lay off Tracey. Jim gives Danny a key to get back into his flat after school. Vera tries to prove she isn't scared by the threats by continuing to persecute Tracey. Doreen throws a jealous tantrum when she overhears Judy and Lizzie expressing concern about Tracey. Vera brushes off Meg's opinion that she should tell the police about the threat, and says she suspects that Tracey's father was behind it. Doreen attacks Officer Maguire for following her around . Meg reports to Erica that she thinks Doreen is on the verge of a breakdown and the surveillance on her should be relaxed. Danny goes through Jim's cupboards and helps himself to some cigarettes. Judy suggests to Lizzie that they get Margo to choose them a winning horse and place a large bet with Kay to clean her out. Danny finds Jim's gun and aims it at him as he comes home , but Jim gets him to put it down. Judy pushes Kay to accept a bet of $20 at 10/1. When it comes in first, Kay delays paying up. She finds Hazel in the corridor and forces her to "place a bet", which means she takes money from her and chooses the horse herself. Judy is surprised when Kay pays her full winnings next day, and Kay issues a general warning to all the women not to destroy her operation. Hazel admits some of the money came from her and Judy realises that Kay has backed herself into a corner: there is very little cash left in circulation and one more big payout will be the end of her, as she won't be able to pull the same stunt again. Jim tells Danny about his family and his experiences in Vietnam. Kay is forced to accept a bet of $50 from Judy for the favourite in the next race at 3/1. Jim takes his gun to work and hands it over to Inspector Grace. Kath tells Tracey she'll get word out to have Vera's persecution stopped. Kay is delighted when Judy's horse loses and declares she'll be in business for a long time. Vera maliciously tells Bob that Tracey has become friends with "the most notorious lesbian in Wentworth" and has seen them in each other's arms. An argument over which TV program to watch leads Lizzie to mention "The Sting", and this seems to give Judy an idea. Vera is followed home and the same man who called the prison knocks her out and leaves her unconscious on her front doorstep.
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