Your memory is failing you. Yes, they knew and cared. Despite the fact that the loss taken was relatively small, the word spread in Las Vegas that pool action was not on the level, and it ensured that no Vegas sportsbook would make book on pro pool.
The historical context was that the Mirage Hotel was new and was trying to make book on as many sports as possible. They were trying to compete with next door neighbor Caesar's Palace. In many cases, they wanted to be the site of the betting event. The biggest shot they took was in boxing, and they hosted a few heavyweight title fights. Some of the lesser sports, and pool was one of them, were given a shot to join the betting mainstream.
The Mirage hosted the Challenge of Champions and made book on it for as long as the event took place there, but once the contract was up (1994 I think), to nobody's surprise, it was not renewed and the event moved to Connecticut.
It's quite possible, as you suggest, that nobody remembers what happened in 1991. It was an opportunity missed, and perhaps it is possible to start from scratch today. Perhaps the scars have healed by now .... or not.