Tim, a young boy living in a small German town in the 1920s, makes a deal with a mysterious stranger known as the "Baron of Cracks" to sell his laughter in exchange for winning any bet. The Baron is a demon who takes away people's features, including Tim's ability to laugh. As Tim wins bet after bet, he becomes richer but loses parts of his soul, eventually becoming a target for the Baron's plans to rule the world. Tim's friends, including his love interest Ida, try to help him break the curse, but the Baron's powers make it difficult. In the end, Tim outsmarts the Baron by making a bet that he can laugh again with the help of his friends, and he is able to regain his laughter and break the curse.
Here are the key facts extracted from the text:
1. The story takes place in a small German town in the 1920s.
2. The main character, Tim, lives with his father in a poor area.
3. Tim's mother has died.
4. Tim's father wants to marry another woman who has a son.
5. Tim and his stepbrother, Erwin, do not get along.
6. Tim's father promises to take him to a luxurious restaurant if they win a bet.
7. Tim's father dies in an accident at a construction site.
8. Tim discovers a mysterious stranger who offers to help him win at the horse races.
9. The stranger is revealed to be a baron who makes a deal with Tim to sell his laughter.
10. In exchange for his laughter, Tim is given the ability to win any bet.
11. Tim becomes rich and famous, but is unhappy and unable to smile.
12. The baron is revealed to be a demon who takes away people's features and tries to be like humans.
13. Tim figures out that the baron is trying to turn him into a demon by taking away his soul.
14. Tim's stepmother and stepbrother come to him for a loan, but he refuses to help them.
15. The baron makes a final bet with Tim, which Tim wins, and he gets his laughter back.
16. Tim is able to deceive the baron and break the curse.
17. The baron is defeated and turns his assistants into rats.
18. Tim is reunited with his mother and they live together.