Turns out the Jawa Blue Room is the betting room after all. (I was reading this thread again and decided to investigate)
I entered the room and for the first time, I noticed a droid behind some bars. I had to use the "naughty naughty" cheat to watch closer, and turns out there were some boards with odds for each racer.
Here's a pic (sorry about the Jawa mess
Love the fact that even after 12 years, you can still find something new in this game.