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Argument 1) The horse is the best horse in the race and will win barring incodent/accident.
Argument 2) There are other horses in the field that I believe are as good if not better than Kauto Star on this particular day. Even if the favourite stays and puts in a clear round of jumping it can still be beaten.
Surely no 2) is a better reason for laying a horse? (I have neither backed it or laid it btw)