The way I see it, if they only won $200,000, they must have only bet about $22,000 on the favourite. If this dog didn't win, presumably they would have received odds of about $6.5 so their liability for the race was no more than $25,000.

Whilst they still could have lost out plenty, essentially they backed a $1.30 dog at odds of $8.
Certainly one way to get value. If it is not there, make it you***lf.

So on this subject, is there anybody that offers best tote on the dog races? If there is, I doubt they will be in business for long.