Here's how it might go. Have to speculate since too many things are just unknown.


Clearly they were betting the money offshore. That's a given

If among the bets was say , a $500 MTH DD, the book can either hold it and pay track odds or send it back to the track and avoid any risk. The bet is a DD bet. If they lay it off to win , that does nothing to drop the odds on the DD and it comes back the NATURAL $200 or more it was supposed to pay, and that's the payoff they have to honor.

And they get hosed.