When Major Kent (George Irving) owner of a race horse is found dead in the stall on board an ocean liner at first it is assumed it is a terrible accident but famed detective Charlie Chan (Warner Oland) is convinced it is murder and joins the cruise to conduct an investigation - helped/hindered by his number one son (Keye Luke).
Chan discovers a brutal gambling ring is out to rip off punters in the US by switching horses but who is behind it? There is no shortage of suspects among the other owners. Maybe the new owner of the horse Chester (Alan Dinehart)? Or rivals Bagley (Gavin Muir) or Fenton (Jonathan Hale)?
It is a complicated mystery and Charlie Chan is his usual self: relaxed (apart from when he is being shot at) and thoughtful investigation interspersed by pseudo and often bizarre "Chinese" proverbs.