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Costello married Ann Batler, a burlesque dancer, on March 30, 1934, and the couple went on to have four children: Patricia, Carol, Lou Jr., and Christine. Costello moved to Hollywood in 1927, where he initially worked as an extra and occasionally as a stuntman. After a lack of success, he returned to New Jersey and performed in burlesque theaters. It was during this time that he adopted the stage name "Costello," inspired by actress Helen Costello.