Las Vegas’ newest superclub KAOS reached the end of the line this week, formally announcing the end of their club nights. The decision to ax the crown jewel of the Palms’ $690 million renovation project was made after the company reported a net loss of $26.8 million in the third quarter, down $51.9 million from the same period last year. Which caused all of the cancellations of their star-studded residencies, including Skrillex, Cardi B, YG, G-Eazy, Above & Beyond, and Marshmello.
Frank Fertitta III, CEO of Red Rock had this to say on a Tuesday call to investors:
“It’s obvious that the nightclub environment in Vegas is extremely competitive. It doesn’t appear that the market has grown enough for the amount of supply in the market. The cost of entertainment is excessively high, and we just made the decision to focus where the fish are and acknowledge that the nightclub business, at least at the Palms, was not working for us.” He goes on to mention the clear contrast in the success of restaurants and gaming at the Palms vs their multi-million dollar venture into a new club for dance music. “One could even make the case that it may have had a negative impact on the core gaming customer on the property,” he says.
Kaos will now only be open for private gatherings before its renovation.