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KAOS Nightclub Closes After Payoff Scandal

After claims that several executives were getting payoffs to book DJs including paying Marshmello an overwhelming $60 Million Dollars, it seems that the Palms has decided to close their entire nightlife venue at an extreme loss.

The Review Journal pointed at John Gray being at fault, while purposely avoiding any claims that there was “fraud” or payoffs. “Gray’s departure lined up with the collapse of the Palms’ relationship with the superstar DJ Marshmello at Kaos Nightclub and Dayclub, a two-year agreement worth a reported $60 million. Gray was one of several high-level executives, including the resort owners, who signed off on the deal. It was apparent pretty quickly that the company over-shot Marshmello’s value to Kaos, currently dark as the ballyhooed Kaos Dome is installed in time for Cardi B’s “Demon Dome” Halloween party.

In a statement from Red Rock Resorts, Inc. to KTNV Las Vegas, the company cites challenging entertainment and fixed costs as the reason for their decision. “Therefore, we have decided to take some time to reassess the programming and use of those venues going forward,” reads a passage. “In the interim, we intend to use the venues for private meeting space and special events, in addition to everyday resort pool operations.”

From the start, KAOS appeared to be paying frothy valuations to secure their all-star talent roster. Marshmello reportedly received a record-breaking $60 million deal from the club. However, after just a few months the cracks began to show when both Marshmello and Skrillex abruptly ended their residencies in September.

One person named in the Scandal was Wynn Executive Alex Cordova, who Bob Morris, a local “in the know” claimed was involved in a scam to inflate the value of DJs while getting kickbacks. According to him, “Alex Cordova, who managed Wynn Nightlife, was walked out the door a few days ago by security there. Much of the management at Kaos Club at Palms, who booked Marshmello, have been fired. Top management there is being fired too, including the GM.”

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