On the one hand, I'm sure Kaz wants to replicate environments as accurately as possible, including any flags hanging from buildings. On the other, does he really want to associate himself with a group that supports brutal horse racing? I dunno...I just think that for the purposes of keeping the peace, changing the flags to something that works with the theme is not such a big deal. From a selfish perspective, I want that track because of the karting fun it will offer, and really don't care if the flags and a few other assets are not exactly like the real location.
It'll be interesting to see how this one pans out that's for sure.