Joking aside, he wasn't stupid.
This battle was won because Mousie, as a Sovereign Hatchling, managed to simulate an Overlord's Aura and construct a Mystery Prototype with its ever-changing traits. All these factors combined let it achieve the feat of killing a creature that was an entire level above it in a blink of an eye.
If he really was to challenge a creature that had achieved Command Peak, unless he joined forces with Little Spider, Mousie's current proficiency would lead to an inevitable defeat after a protracted stalemate.
Gary Smith wasn't interested in doing anything that didn't bring any benefits.
Having flexed his muscles and won a lot of money was more than enough.
Moreover, this time, Mousie had surprised him with the Thousand-Faced Armament.
Through building a trinity, it made the Savage Ant, which mainly focused on attack power, to make up for its weakness against elemental life and soul system.