If you and I (ignorantly) bet on the outcome of an unfair contest, neither of us has an advantage. Only the agent who fixed the race has an advantage. As far as either of us is concerned, it's like flipping a coin. It's like watching a recording of a game that was played yesterday. As long as none of the spectators knows who the real winner is, you can still enjoy the game and even wager fairly on the result.

In the real world, the outcome of most activities are determined in advance, only the participants and the spectators don't know how its going to turn out. Later, when all the facts are known, it is clear why A had to defeat B.

This may be related to Schrodinger's cat, but I wouldn't bet on it.