Did anyone actually bet on the Kentucky Derby?

I missed it entirely.

Nobody cares, except wastrel gambler types.
All is All in ALL.

I don't know what an exotic bet is but according to the Washington Post:

That figure probably doesn't take into account illegal betting handled between illicit bookies across the country (and globe). So... of course, any freak incident would become a case for serious controversy. You can basically stretch this statement across any and all major sporting events where the betting stakes can be astronomically higher.