Wsex should have done one of four things
1. Not take exotics.
2. Post on the wager and confirmation page that the bet is capped at 300/1.
3. Lay off their action.
4. Buy insurance for big hits like places like Taco Bell do for big promotions.
Anything else is unacceptable.
What would they have done if it was $20? Who knows. I do not know WSEX's threshold for bad publicity. Only they can answer that. Obviously, their good name is worht some amount and smokey's campaign was going to cost them X amount. Only WSEX knows what they would have paid.
But I will tell you this - I guarantee you next year the KY Derby limits are incredibly clear.
-Sean