This is gambling...entertainment. Thus it doesn't matter if you know that information or not and it doesn't matter if the connections took advantage of the loophole for their profit vs their customer base.
It's part of the plot?
Reminds me of an old joke told in my wife's big catholic family - short version - gentleman wanted his dog buried next to his plot when the dog died, priest said they don't bury animals, animals don't go to heaven etc, gentleman said he had $100,000 to donate to the church, priest says "why didn't you tell me the dog was catholic"
Horse racing seems to work the same way when it comes to information and ethics. It's just the way the world works. *Helps to know a good betting stable on occasion.
I've just become a cynical bastard when it comes to horse racing, not good for fans of the game - peace out