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Intra-party deception is generally frowned upon. But the rules can be thrown out the window if you have players play characters in different parties.
In an interesting extreme version, you could have each player play two different characters, one in the heroic party, and one in the enemy party. Then have the players plot evil things against themselves! They can get way more creative and vindictive than anything a time-starved GM can come up with.
Commentary by memnarch (who has not seen the movie)
Well, this is going to go well. I suppose since these were characters that were just made up for Canto Bight, that's why Pete doesn't feel the need to try and support the party in this instance. Or maybe he's really getting into the roleplaying side!
The part that's really interesting though is that there's not just plotting on the kids's side. I bet that either Corey has either pointed out that they can't trust whatever Pete comes up with, OR that they could potentially ask the bookies if there were any bets placed by the kids on those fathiers to confirm the info first. I don't see them being quite as devious as Pete could be however. That would involve asking the bookies for a reward before turning the kids in for race rigging.
Transcript
Rose: So can you tell us which fathiers to bet on?
Oniho Zaya: Let me discuss this with Sally and Jim...
Rose: Okay. Annie, Corey, I think we need to make some plans too. Let’s go to the kitchen.
Oniho Zaya: Right. We don’t have any reason to trust these randoms who climbed out of a sewer in our stable.
Temeri Blagg: They gave me a joy buzzer ring.
Oniho Zaya: That and two credits will get you a cup of Spiran caf.
Arashell Sar: What do you propose?
Oniho Zaya: If we tell them the fathiers we’ve rigged to win, they’ll bet on them and lower the odds. We lose out.
Arashell Sar: So we lie to them?
Oniho Zaya: Yeah. Give them the worst nags. But be subtle about it.
Temeri Blagg: Subtle. I like it.
GM: All right. I’ve got it.
Rose: You guys done?
Oniho Zaya: Yep! The fathiers we’ve rigged to finish first, second, and third are Tuna Booze Oil...
Arashell Sar: Bigger Fish!
Temeri Blagg: And Let the Bookie Win.