Thomas fixes a horse race, provoking the ire of local kingpin Billy Kimber. He also start a war with gypsy family the Lees. Meanwhile, Inspector Campbell carries out a vicious raid of Small Heath in search of the stolen guns.
The Peaky Blinders gang head to the fair, but make a stop first. Thomas Shelby gets a horse from Johnny Dogs in exchange for Johnny riding in the family car. The three brothers (Thomas, John Shelby and Arthur Shelby Jr.) get into a fight with the Lee family after they call their mother a "Diddicoy whore".
Inspector Campbell trashes homes while the Peaky Blinders gang are away at the races, making it seem like they allowed the police to perform such vile acts. Freddie Thorne escapes from his home with Ada Shelby before the police catch him, but at his home they find a medical prescription paper with Ada's name written on it.
Campbell tells Polly Shelby he wants to meet Thomas, now that he knows Thomas is the real leader of the Peaky Blinders. Thomas tells Polly he won’t meet him, and that first he’s going to strike a blow back at Campbell.
The Peaky Blinders pay everyone to start burning pictures of the King on Watery Lane. Thomas hires a reporter from the Birmingham Evening Dispatch to write an article about the event. Word about the event spreads to Winston Churchill, who calls Inspector Campbell about it.
Ada and Polly find out that Ada is pregnant with the child of Freddie Thorne.
Charlie Strong shows Thomas a bullet with his name on it, from the Lee family.
Thomas finds out that Ada is with Freddie Thorne.
Monaghan Boy finally loses in the races, and Thomas uses all of the won betting money to buy their popularity back from the people of Birmingham. Polly yells at him for fixing the race without the permission of Billy Kimber.
Polly gives Thomas a letter from Ada to give to Freddie. Thomas throws the letter in the cut.
Polly tells Ada about how she was 16 when she first got pregnant, and how she almost died giving herself an abortion, while the father of her child didn’t come back. She says that she was too scared to tell anyone that she was pregnant and as a result of her termination, she nearly died. She tells them they should take the train the following day for Ada to get an abortion, stopping by to see the castles afterward as a treat.
Thomas meets Inspector Campbell. He makes a deal for the Special policemen to leave Thomas’ men and runners and business alone. He tells him about his planned expansion onto the racetracks and business with Billy Kimber. Thomas tells him that once his business is done, he will tell Campbell where the guns are. Campbell agrees to the plan.
Curly tells Thomas that the Lee family cursed his white horse. Thomas shoots the horse in the head.
Freddie proposes to Ada and she says yes, but he tells Polly and her that they are staying in Birmingham, and that he is not afraid of Thomas.
Billy Kimber enters The Garrison Pub with his assistant Roberts and has a meeting with Thomas, John, and Arthur. Thomas proposes to work with Kimber in order to beat The Lee Family, and Billy Kimber agrees. Roberts tells Thomas that they will be at the Cheltenham races.
- Thomas Shelby (to Polly Shelby): “For a woman who’s had a hard life with men, you’re still full of romance.”
- Polly Shelby (to Ada Thorne): “You know the words. You’re a whore. Baby’s a bastard. But there’s no word for the man who doesn’t come back."
- Thomas Shelby: “I am a businessman. I want to make my business successful.”
- Inspector Campbell: “And I want my city run peacefully.”
- Thomas Shelby: “Now why would I shake the hand of a man who didn’t even fight for his country?”
- Inspector Campbell (to Grace Shelby): “Thomas Shelby is now the beginning, the middle, and the end of your mission.”
- Arthur Shelby (to Thomas Shelby): “You stay the way you are, Tommy. Remember what Dad used to say, ‘fast women and slow horses… ‘will ruin your life.’”
- Billy Kimber (to Thomas Shelby): “Right, he’s the oldest, you’re the thickest. I’m told the boss is called Tommy and I’m guessing that’s you cos’ you’re looking me up and down like I’m a fucking tart.”