KAOS Dayclub and Nightclub in Las Vegas is closing its doors. The Las Vegas Review-Journal is reporting that Red Rock (the owner of KAOS) “reported a net loss of $26.8 million in the third quarter, down $51.9 million from the same period last year” which contributed to the sudden closure. The nightclub and dayclub were just opened in April of this year and was a multi-million dollar renovation undertaking at the Palms Hotel.
The losses were also due to the termination of artist agreements and “higher depreciation and amortization relating to the Palms redevelopment.”
Red Rock Resort has 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.”
This story is developing.