Fake news
I guess if people hear the same thing enough times they really begin to think it might be the truth
Here is the betting odds from the same event at the same casino three years after Mike L vs Buddy H and they are still taking bets on pool then.
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The reason they don't take bets on pool is simple, not enough public interest and that ='s not enough action and money to make.
Sports wagering over the years has 100's of proven cases of match & game fixing ref's being bought off,players shaving points, boxing is fixed,drugged horses & shady jockey's in horse racing.
They still take bets on every single one of those sports because of the money they make lol.
Actually, your post is, in my opinion, fake news. The context here was that the Mirage had just opened and the management wanted to overtake their next door neighbor Caesar's Palace, then the top sports book in America. Several steps were taken to host sporting events and attract action, most notably the building of a boxing venue, and betting on the events hosted by the Mirage became big very big business, used as a lure to attract big action in both the casino and on the events themselves. It didn't happen overnight, but in the end, the Mirage did a lot of business due to this approach, and began to invest more and more money in hosting sporting events.
Pool was, to its potentially great fortune, another new venture in which the Mirage chose to invest, in the form of the Challenge of Champions. Every intention was, by investing more and more in it, to gradually grow the event and give it a higher profile, for it might, one day, help the Mirage get customers, although on a much smaller scale. Yes, it was never going to bring a huge betting handle, but the handle would have grown over time., and would have given The Mirage additional incentives to build the event.
The 1991 dump did little damage financially to a casino that handled so much money, but it did create a disincentive for The Mirage to continue hosting and further investing in it, and the dump, at least in part, explains why The Mirage abandoned the event when the first multi-year contract ran out a few years later. The dump, similarly, alerted other Las Vegas sports books that might have booked pool one day that the sport was not on the level, and few, if any, went on to book pool.
Without the dump, the Challenge of champions might STILL be at the Mirage, and given the size of The Mirage's promotion budget, might have grown considerably into something more special. Similarly, Las Vegas' appetite for booking pool events might have grown considerably. FYI, snooker generates plenty of action with the British bookmakers, so there's plenty of evidence that people enjoy betting on cue sports given the opportunity.
I don't think the fact that Mirage didn't abandon the event or its betting handle immediately in any way invalidates the conclusion that this was a missed opportunity for pool.