Good concept, but needs work...
I think this could be a great game if some basic improvements were made, such as:
1) There needs to be a way to train the bugs from the start, not just hope to get random good stats when you breed them.
2) There needs to be some way to remove the toy items from the screen (maybe have an inventory panel so that buying it does not mean it goes straight into the bug pit).
3) The bugs in the battle/race arena need to be redone so they match (or are at least closer to) the current level of the player's bugs. The first time I went there I saw the highest level bugs and thought "why would these be here already?"
4) It seems to me that the toy prices in the store are a bit high for the low level of "happiness" that they give the bugs
5) If I went to race a bug that I clearly had a speed advantage over (not much, but my bug's speed bar was higher), it seems that the CPU would win too often
6) When I would lose a race, the game would take away double what my bet was. If I bet $200 and lost, the computer took away $400. That's not how gambling works. You should only lose what you bet, and if you win, you'd get double your bet. Maybe you could also add some more dynamics to the betting (like wagering bugs or other items instead of money).
Overall, a good attempt at the game, but there's definitely room for improvement.