Watto
An on-the-ball and grumpy owner of a second-hand goods store in Mos Espa, Watto is a tetchy, unkempt Toydarian with a fondness of money and gaming. While one of the minor stores of Mos Espa, Watto's junkyard was nevertheless a wealth of surplus equipment and spare parts.
Amongst Watto's belongings were the slaves Shmi Skywalker and her son, Anakin. After winning a Podracing bet with Gardulla the Hutt, they became Watto’s property, and he put them both to work in his store. Anakin demonstrated an unbelievable aptitude for equipment repair, and Watto took a liking to the youngster. Yet despite the fact that he was unprincipled enough to own slaves, Watto was a reasonable master. It most likely had to do with the point that the boy was a major source of profits for Watto, not only in servicing his machinery, but also in reality contending for Watto in the Podraces.
Anakin was an astonishing pilot, the only human to participate in the treacherous speedy sport of Podracing. However whenever Anakin would race against the scheming Dug Sebulba, Watto would always put money on Sebulba for the reason that, "he always wins!"
Watto's greed and gambling got the better of him when the Jedi Master Qui-Gon Jinn and the young Naboo royal, Queen Amidala, crossed his path. Watto wagered all his money -- and Anakin as well – on Sebulba. For once Sebulba lost the Boonta Eve Classic to Anakin, costing Watto everything.
Frantic to recover his losses, Watto ultimately sold Shmi Skywalker to a moisture farmer named Cliegg Lars. The unlucky trader reported as much to a grown Anakin Skywalker, when he revisited Tatooine a decade later to see his mother.
Expanded Universe
Prior to coming to Tatooine, Watto was part of the Ossiki Confederacy Army durring the conflicts of his homeworld of Toydaria. In one battle, Watto suffered injuries that left him with a broken tusk and a disabled leg.
On Tatooine, Watto learned much of his business savvy from dealing with the native Jawas. Not only does he have a talent for haggling, but also cannot be affected by Jedi mind tricks. His preferred targets were outlanders -- whom he regarded as easy marks. Though Watto's junkyard is one of Mos Espa's smaller stores, he stocks such a broad collection of machinery that it is well patronized. If Watto didn't persistently gamble away his earnings it would turn a tidy profit.
Several years after the rise of the Galactic Empire, Watto was killed by a cybernetically revived Darth Maul.
Behind The Scenes
Initial designs for Watto were of a more bird-like nature, including plumage and a beak. Another manifestation would lay claim to tentacles and a cigar. Watto's face, on the other hand, originated in an early Neimoidian picture by Design Director Doug Chiang. The hooked trunk and crooked teeth were carried over to the Toydarian design.
Animation supervisor Rob Coleman realized that the alien's dental work would need some modification when the time came to create Watto on screen. Watto always speaks (typically to grumble), and the craggy teeth made lip-sync easier said than done. To solve the problem, Coleman broke off one of Watto's incisors, giving him a 'corner-of-the-mouth' vernacular.
The sound of his wings flapping is a looped recording of sound designer Ben Burtt opening and closing an umbrella.