Afterward, Jack's working on the paperwork when Ralph gruffly says he'll take care of it, because Jack's got somewhere to be. Jack's not going to pass that up, so he heads for the door, wishing his brother a sincere Merry Christmas before he goes, and the brothers smile at each other.
Over at the Savoy, Dixon appears to be hosting and bartending a Christmas party for a bunch of deputies and assorted hangers-on. He snatches some mistletoe to hang between him and Yvonne, but she slaps him and walks off, leaving him to chase her and demand to know why she's so bossy. "Because you love it," she says, and then she roughly shoves a bucket in his hands and tells him to go get some ice. Despite his apparently raging boner, Dixon eagerly does so, while Yvonne bites her lip all turned on.
In the hall, he runs into his uncle. "What are you doing here?" says Jack, surprised. "Nothin'. You?" asks Dixon. "Nothin'," says Jack, and they go on their separate ways. Mia lets Jack into her room, oblivious to the bombshell she's about to drop on him that they can't see each other anymore. Jack jokes he knew he should have got her Patsy Cline, but Mia's serious, what with the conflict between their families (in all senses). "I'm not afraid of your father," Jack says. "You should be," Mia says. Yeah, I'm kinda with Mia on this one. Jack asks her if it wasn't working for her the other night when she was in his arms on the dance floor, because it was working for him. "Jack, don't make this harder," she says, and opens the door. He asks if this is what she wants, and she says it doesn't matter.
He leaves, but as she closes the door he sticks his foot back in. "It matters to me," he says, and kisses her. She kisses back, and clothes start coming off, and this is where we leave them.
"Blue Christmas" starts back up as Katherine stops by Ralph's office to give him some Christmas cookies. He's got a gift for her too: Horse shampoo. Since any woman would be powerless to resist such powerful romance, she invites him to join her with some friends having a drink at the Gemini, but he begs off, citing paperwork. She says she doesn't like the thought of him alone on Christmas Eve, but he says he's got a couple of murderers "in the hoosegow" to keep him company. They wish each other merry Christmas, then hug -- he awkwardly kisses her on the cheek -- and hold the embrace a little long, but with no follow up tonsil hockey.
Over at the Savoy, Savino's hurriedly meeting Rizzo in Diane's dressing room, saying he came as fast as he could -- and stops up short when he sees Diane, dead on the couch, needle sticking out her arm. "It's a shame about her. A shame," says Rizzo, looking utterly indifferent, adding, "Once a junkie, always a junkie, right?" The camera zooms in on Savino the Conscientious Mobster's horrified face, and then it cuts to him getting a drink while his family opens presents on what appears to still be Christmas Eve. Savages.