This time the Durango Kid confronts an expert gambler.
Jim Stewart (Charles Starrett) comes to Mesa City and buys a ranch from publisher Matt Edwards (Weldon Heyburn), who is confined to a wheelchair. The area is terrorized by an outlaw gang known as "The Phantoms." When Jim's cattle herd is rustled and his ranch foreman, Pop Evans (John Elliott), killed, he takes an active hand against the gang in his guise as the Durango Kid.
A masked outlaw steals from bank robbers to help the poor.
Government Agent Steve leases land to Masters so he can bring in horses for the Army. Henley has obtained a forged lease for the same land and Steve is unable to prove it's a fake. While Steve checks with Washington, Henley plans to roundup and ship the horses. Masters also intends to roundup the horses and he has the Durango Kid on his side in the battle with Henley.
When Steve Downey arrives to reopen his brother-in-law's gold mine, he finds a war between the ranchers and the miners. Ashton has had the water poisoned killing cattle. When Ashton's men find Steve's hat, they kill Tom Tavish and frame Steve for the murder. Escaping jail the Durango Kid goes into action.
The plot finds Steve/Durango attempting to capture ex-Civil War guerilla fighter Miller (Trevor Bardette), who may be the man who's been going around knocking down telegraph wires.
In the lawless town of Dusty Gulch, the Durango Kid comes to the aid of Reverend Harding in his fight against Blaze Howard and his henchman. When Durango foils all bad guy's plans, Blaze's boss Doc Weston realizes Cannonball it tipping off Durango. Weston then lets Cannonball overhear false information that will send Durango into a fatal trap.
Durango, aka Steve Rollins (Charles Starrett) rides into town with saddle pal Smiley Burnette. The boys go to the rescue of pretty Kathleen Case, who is being victimized by greedy relatives.