I'm not sure how that works but for me as long as it is safe and they can't rigged it then I would probably try it out. Do you have the link of the website on what you are talking about? I'm getting curious about it and I think that was more better than the traditional horse betting, why? first it will not use real horse which I think are bred for racing and of course it's not 24/7 unlike this AI horse racing where you can place bet 24/7.
Betting on traditional horse races is more fun because we have to be able to choose a horse that has a greater chance of winning than other horses. This requires collecting more complete data to find the right horse. As for the AI horse, @OP said that we could develop it into a perfect horse that can beat the opponent's AI horse. And that's where the fun we find in betting on traditional horse racing comes from.