Alright..what happened to the money?
Winning the money is important to the story because it reinforces the accuracy of the information the paper provides. Even when attempts are made to manipulate and change the outcome of the race, everything ends up exactly as predicted. This is why Larry is so worried. He knows he's doomed; his fate is sealed.
The money also represents Larry's downfall. Pops tries to warn him but he doesn't heed the warning. He has everything he's always wanted: the job he pushed to get; the love of an attractive, devoted wife who's not concerned with riches; the great respect and admiration of his co-workers, his boss, and the public; yet he opts to spend what little time he thinks he has left chasing after money that's not rightfully his.
I think the story ends just as it should. Sylvia and Larry don't need the money. They're able to follow their dreams, have the big family they wanted, and find success in spite of having lost the cash. This, I feel, is why Sylvia has always kept Larry from sharing his story with the family.
It sends the wrong message. She doesn't want it to seem like Larry got where he has through luck, magic, or chance. People who are looking for quick fixes and easy answers rarely put in the effort it takes to achieve anything worthwhile. They look for the easy way out so any 'success' they do achieve is ill-gotten and short-lived. Fittingly, we see this played out a number of times in the story and there are always consequences.
So, what happens to the money? It's never recovered but the thief who stole it pays the ultimate price for his crime. Perhaps his accomplice, the bookie, ends up with the cash. Altogether, that's not a bad thing. The money was, after all, his. Larry 'won' the money but it was under false pretenses.
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