Having never used the "Pay N Play" part of racecasino, i can't really comment, but perhaps the instant withdrawal is only available for registered accounts and it's more of a mix-up on their part as opposed to a "lie" as any withdrawal i have made from them via visa debit has indeed been instant from when I pressed withdraw and it's in my bank account right then.
Your second post however gives me pause. Just because you decide to take a break, or indeed close completely, I don't think should give them the right to withhold your money, but playing devil's advocate, we should read that they do it before signing up I guess.
Can't say i'm overly enthused by their "Resposinble Gaming" tools either, I'm currently on a time-out, and only logged back in after reading your posts. As far as I was aware, time-outs were supposed to be irreversable.... on race it appears not. I went to the page they said and sure enough I was able to re-open it at the click of a button (takes a day to take effect, but still.... it doesn't seem 'responsible')