Run to the gambling room where you found the stuffed animal, loop him around the table, then exit the room :]
how do I actually distract the dog
you first go to the laundry room and from the washing machine, you will get some change, use it in the playroom area and youll get a stuffed toy, go to the dishwashing room and put gravy on it, then give it to the dog and done :)
How do I get the coin out