Gracie's time with Toronto came to an end after being traded to the Ottawa Senators for Hec Kilrea before the start of the 1933–34 season. Ottawa in turn, immediately dealt him the same day to the Boston Bruins for Percy Galbraith, Bud Cook and Teddy Saunders.
After being moved from Toronto to Ottawa Senators in exchange for Hec Kilrea prior to the start of the 1933–34 season, Gracie was traded by Ottawa to Boston Bruins on the same day. The trade included Percy Galbraith, Bud Cook, and Teddy Saunders.