It's let into gay pit pony (8)

I believe the answer is:

galloway

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'pit pony' is the definition.
'Galloway' can be an answer for 'pony' (thesaurus). I'm not sure about the 'pit' bit.

'it's let into gay' is the wordplay.
'it's let' becomes 'allow' (synonyms).
'into' indicates putting letters inside.
'allow' put inside 'gay' is 'GALLOWAY'.

Can you help me to learn more?

(Other definitions for galloway that I've seen before include "Scottish region" , "Scots beef" , "Scots breed of cattle" , "Respect MP" , "farm animal" .)

I've seen this clue in the Sydney Morning Herald.

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