Kaos Dayclub and Nightclub Closes at Palms

In the biggest Las Vegas implosion since the Riviera, Kaos dayclub and nightclub at Palms has closed.

Palms officials announced the closure following months of drama surrounding the venue that’s been bleeding cash since it opened in March 2019.

Here’s the official statement.

Kaos closed

“Taking time to reassess.” Otherwise known as “the last words you hear before somebody breaks your heart.”

Kaos was part of a $679 million renovation of Palms, an investment we personally consider to have been “a smidge on the batshit crazy side.”

The reasons for the failure of Kaos are many, but ultimately it was simply a matter of math.

The venue paid ungodly amounts of money for talent, and even on its busiest nights, Kaos failed to make a profit.

Marshmello, for example, snagged a deal for $60 million. Cardi B was paid $300,000 for each of her 15-minute performances. Simply unsustainable.

Kaos closed

Fun fact: We broke the news Kaos would be named Kaos. Which doesn’t seem all that much fun now for some reason.

Frank Fertitta, CEO of Red Rock Resorts, the company that owns Palms, said nightclub customers “did not have spendable money, we didn’t see the crossover into the casino.” Read more.

We are not an economist, but we’re fairly sure businesses prefer, and often require, the spendable kind of money.

Red Rock Resorts is writing off $28.2 million in losses from Kaos, with more on the way. Over the next six months, it’s expected they’ll have to write off another $16 million to $22 million.

The Kaos debacle has resulted in the ousting of a number of high profile executives. Recent departures include Jon Gray, G.M. of Palms, and Las Vegas nightlife heavy hitters Ryan M. Craig and Ronn Nicolli.

One twist to this story, generally not mentioned in coverage of the Kaos closure, was that time Tao Group bailed on a partnership to manage the nightlife at Palms in late 2018. It was a big red flag at the time, and entirely possible Tao Group saw the writing on the wall.

Had you been following us on Twitter, you would know all this because we’ve been chronicling the whole Kaos debacle in excruciating detail for months. We’ll wait while you follow.


Kaos Tweets

We like to think of Twitter as our quicker, snarkier “blog.”

What’s next for Kaos? As mentioned in the official statement above which you didn’t read completely because it was boring, the venue will be used for private meeting space and special events, “in addition to everyday resort pool operations.”

Most costly collective cringe, ever.

What does the Kaos saga mean for nightlife in Las Vegas? Nobody knows!

What other heads might roll at Palms? Nobody knows!

Is this the end of the bad news out of Palms? Nobody knows!

Are we just asking questions because we can’t think of a clever way to end this blog post? Absolutely!

We’ll close by saying we hope the folks working at Kaos find gainful employment elsewhere quickly, and we continue to root for Red Rock Resorts to win its gamble on Palms despite it being a longshot.

23 thoughts on “Kaos Dayclub and Nightclub Closes at Palms

  1. Will

    I visit the Palms roughly 3X a week and have been doing so for a good number of years.
    I also visit the Orleans the same amount of time ….. and I do notice that the tables at the Palms are relatively empty when compared to the Orleans.
    And I have to assume that the reason for that …. is that the Orleans offers $5 blackjack while it’s a $10 minimum at the Palms.
    And although the Palms has been very generous with their buffet two-fers, I’m not too excited when it comes to the buffet lineup and often find myself simply enjoying the salad bar.
    But I gotta admit that I do enjoy the Buffalo slots and the movie theater which are the main reasons I visit the Palms 3X a week.
    I can’t remark about the new dining spots in the Palms because I have yet to dine their except for the “Penny” coffee shop which I thought was overly priced with nothing exceptional and never did return.

  2. Solid W.

    Weird, you can’t dump million of dollars on glorified keyboard jockies running techy jukeboxes and turn a profit?

    I wasted my 20s, as I never wanted to line up and pay big money to go to a dance club where the price of every last drop of liquid was obscene. Who are all these people who have fat stacks of cash to burn on a night of drinking? And don’t say trust-fund kids, because there’s no way there are enough of them to support the “club” scene in Vegas. Are there really that many morons in Vegas who want to burn through hundreds of dollars for a night of “entertainment” on a recurring basis? If I could afford hundreds of dollars on a recurring basis, I’d have a mansion on the lake.

    I really f*cked up my life somewhere along the way if the idea of burning hundreds of dollars for “bottle service,” and the funds to afford it, has never been a consideration.

    Wasted youth.

    1. alex

      Are there really that many morons in Vegas who want to burn through hundreds of dollars for a night of “entertainment” on a recurring basis?

      It’s complete speculation, but I would imagine tourists make up a good chunk of the nightclub crowd in Las Vegas. So, you probably don’t need a large number of local morons if you have morons flying in from other places.

  3. Andrew

    Ka boooom ! We all saw that coming. I was honestly surprised to see these guys investing in such a massive project with the nightclub industry in the middle of a crisis. Wow,feels like yesterday I was hitting on chicks at Rain nightclub and it’s actually 18 years ago. I bet most of those girls have families now. Oh wait I have one too….lol

    1. Solid W.

      It’s the internet, and there’s no trademark on it… so do what we all do, steal it and use it at will.

      That came off the top of my head, for the record.

  4. RRomero

    It was horribly mismanaged from day one: $30million a year for a DJ to press play on his ipod…when the whole EDM scene has been dying out for a couple of years now? MILLIONS on some modern art? For an off-strip location?

    (btw, that whole debacle between Palms and Wynn for that $30mio DJ is likely criminal and the promoter at Wynn and the GM at Palms, both of whom have “resigned”, will likely face charges from what is being said on other blogs)

  5. Jon

    “As mentioned in the official statement above which you didn’t read completely because it was boring”

    Hahaha – it’s like you’re inside my brain!


    I for one give Red Rock the credit for being bold and trying to shoot for the stars on a project. They clearly wanted to try to get the property back to its former glory when the whole nightlife world in town rotated around Palms. There’s so much “play it safe” going on in Vegas, it was refreshing to at least see a company try to disrupt the market.

    They shot their shot in the nightlife sense and clearly have missed the target thus far, but they have also pumped a ton of money into renovating and improving the rest of the resort which hopefully they will see a return on in the future. The timing just seemed to be off on this one but still pulling for the place to succeed.

  7. Todd

    Why do you have to have a $60,000,000 DJ? You mean you can’t find someone for $5,000 a night to play popular dance music? Just goes to show that some things in Las Vegas are still outrageous.


    Sixty million dollars per year is $164,000 per day. Three hundred thousand dollars for fifteen minutes is $20,000 per minute. Obviously, I picked the wrong career path.

  9. Jeff in OKC

    I’m pretty sure none of us commenters are “target market” for the nightclub business in Las Vegas, so we are pretty much “talking out of our ass”.
    I think the Fertitta brothers had an incredible windfall from the sale of the UFC ( probably over $3 billion dollars net, or taxable, income). That allows them to spend large amounts on property improvements that might usually be seen as highly speculative, but when almost all the expense can really be tax deductible, what is the downside?

    1. Choose Your Own Adventure

      Whatever the “target market” was, it either didn’t exist or it didn’t show up. Take your pick. At the end of the day, they blew it. I don’t have to be part of the “target” to know that.

  10. Lee Staples

    I laugh from the line that customers at the the nigh club didn’t have money to spend, and they didn’t crossover into the casino. A club kid with now money? Say it isn’t so!

      1. Saul L.

        There aren’t tens of thousands of young idiots with money to burn? I though today’s youth were all Instagram famous and “influencers.”

        F*cking morons, that’s what we’re raising.

  11. Serge

    IMHO, I think Palms has an image problem. They want to cater to a younger crowd but still have older people with canes and walkers stand in line for a free salad bowl. That doesn’t mix. That’s not what that younger crowd wants to see when they go to a club or walk out.

    You don’t see that at Marquee, Hakkasan, XS, or Omnia, do you?

    Also, there was zero engagement with the crowd when they left the club. It should’ve had games aimed at a younger crowd like skill based games etc.

  12. j

    Never got a chance to visit in August and was hoping to take a stab next year. Those paychecks are CRAZYYYYY. They will never be as popular as Drais cause its FAR from the strip. My husband I only been to ghostbar a few times and had to uber or back then drive our rented car. That massive thing in the middle of the pool was horrendous also


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