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The gag bit is a type of bit for a horse. With two sets of reins, the gag bit gives a rider the ability to use either a standard direct action or a gag action. In this, the gag bit is related to a Pelham bit and a double bridle. Unlike these, however, the gag bit has no curb strap.
Gags are used by Toons to attack the Cogs, who wish to take over Toontown by turning Toon Buildings into Cog Buildings. Every Toon starts off with two gag tracks: Throw and Squirt. More gags can be earned by earning skill points. Skill points are given every time a gag is successfully used on a Cog if that Cog's level is not below the level of the gag. New gag tracks can be earned by completing ToonTasks for gag track animation frames.