The Devil decides that since neither Morgan nor Sam are stepping up to be the second in command, there will be a competition between the two. The winner becomes the heir, and the loser gets nothing. Whichever of the two sends the soul to hell first wins, but Sam doesn't want to win, and tries to help Morgan. Morgan tries to set him up to be killed by giving him a fake vessel, but Sam kicks some butt and escapes. The Devil is pissed they let the soul escape, and there's a hilarious scene in the diner between the three of them. In the end Sam and Morgan go in to capture the soul, but the soul has made a portal to let others sould escape. Sam kicks more butt on the escaped souls, while Morgan gets his butt handed to him by the main one. The vessel is destroyed (thrown into the portal), but Sam throws the main soul back through the portal to hell to save Morgan's life. This causes him to inadvertently win the contest, and Morgan has everything taken away from him, swearing to kill Sam.
Andi convinces Sam to follow up on the guy in the cemetery; Andi, Sam, Sock, and Ben pose as mourners at a funeral. While Sock hits on a girl at the burial, in the background Andi, Sam, and Ben chase the guy, with Andi getting some great physical stuff (tackling him, threatening him with a pitchfork). They bring him to a track to try and torture him to tell Sam how he got out of his deal, but this doesn't work. He complains about being cooped up on the consecrated cemetery, the gang arranges for him to go to Vatican City where the whole city is consecrated, and he agrees. Before he leaves, he tells Andi and Sam that the Devil is vain, and can't resist a challenge; he got out by challenging the Devil to a poker game and winning. There's one catch though, which he won't reveal until he gets to VC. Andi and Sam celebrate, but in the final scene the Devil has arranged for the guy to be tempted (plane is stopping in Vegas) and thus immediately sent back to hell.
Sock has a largely irrelevant and not-really-funny storyline where he continues hitting on this girl at the funeral by going to all these funeral-related things. The only purpose of this is to get Sam the money he needs to send Graveyard guy to Vatican City ($10k).
Finally, Ben's grandmother and her dog show up, and because of her gift can see that Nina is evil. Nina tries to talk to the grandmother about knowing Heaven and meeting St. Peter, but the dog startles her and she changes into demon form. This causes Ben's grandmother to have a heart attack. Ben is pissed at Nina for not doing what he said, and Nina is pissed at Ben for not sticking up for her to his grandmother. Ben breaks up with Nina (awesomely) and Nina threatens Ben that he'll pay.