After only six months from opening their doors, KAOS Dayclub and Nightclub at the Palms in Las Vegas has closed due to expense. Red Rock reported a net loss of $26.8 million in the third quarter of 2019.
Red Rock Resort issued the following statement:
“This afternoon, Red Rock Resorts, Inc. announced the closing of KAOS dayclub and nightclub at the Palms Casino Resort, effective immediately. While Palms has experienced exceptional growth across both the gaming and non-gaming segments of the business, the expense side of the business has been challenging to date, due in large part to the entertainment and fixed cost structure associated with KAOS. Therefore, we have decided to take some time to reassess the programming and use of those venues going forward. In the interim, we intend to use the venues for private meeting space and special events, in addition to everyday resort pool operations.”
The club held pool party performances as well as an incredible main room that featured multiple sparking spheres from the ceiling. Also part of the club was a 60 foot bronze sculpture by Damien Hirst titled “Demon with Bowl”, and the largest LED wall in Las Vegas.
Artists who have played at KAOS included Deadmau5, Kaskade, and Above & Beyond. And performed as well as received residencies at KAOS, but later pulled out of their contracts. These contracts may have been who a reffered to when they stated the cause of the income loss was from “one-time charges relating to the termination of certain artist performance agreements and employment arrangements at the Palms, as well as higher depreciation and amortization relating to the Palms redevelopment project.”
There are already early reports that the “special events” from Red Rocks statement will still include concerts. We’ll see what the future holds for the former KAOS grounds.