The good story and Carole Lombard's performance make "The Racketeer" one of the movies of the very early sound era that still holds up all right. It does have the flaws common to the earliest sound movies, with some shaky dialogue delivery, an erratic pace, and weak sound quality. But these do not keep it from being worth seeing, and in any case even the better movies of 1929 usually had some of these same problems.
Lombard has a very good role as a somewhat mysterious divorcée caught between two very different men. Robert Armstrong plays the gangster who helps both her and her other boyfriend. The third member of the triangle is a drunken violinist played by Roland Drew. Drew gives a rather nondescript performance, but at least the character is interesting. More than that, the setup does a good job in varying the usual formula so as to set up some good drama.
The atmosphere holds up well, and although some individual sequences have oddly chosen pacing, as a whole the story moves along pretty well. It easily holds your interest for the whole running time. It compares favorably with many of the movies of its day, and it is still a solid feature worth seeing for those who enjoy the movies of the era.