Vegas Nightclub KAOS Shutting Down ⁠— One Month After Handing Marshmello a $60 Million Contract

Photo Credit: MTV International / CC by 3.0

KAOS Nightclub and Dayclub will close its doors just six months after signing Marshmello. The $60 million two-year residency was abruptly dropped last month.

Now the club, part of the Palms Casino and Resort ⁠— will close for good. Marshmello signed his residency contract back in April after his Fortnite in-game appearance broke records. The contract was rumored to be worth $600,000 each performance weekend, though we’re not sure how much was paid upfront.

In late September, the club released Marshmello from his DJ contract early. Several executive shuffles happened right around that time, as well. Yesterday’s closure announcement did not detail specific names or acts.

Palms’ parent company Red Rock Resorts said the decision was based on ‘untenable entertainment expenses.’

Red Rock Resorts reported a $26.8 million net loss for its Q3 2019 earnings. CEO Frank Fertitta told investors that market conditions make operating a Vegas nightclub difficult.

“It doesn’t appear that the market has grown enough for the amount of supply. The cost of entertainment is excessively high, and we just made the decision to focus on where the fish are.”

Turns out the fish for that bait are probably online ⁠— where DJ fans can attend concerts without an expensive vacation attached. Much of the company’s troubles were blamed on KAOS’ entertainment structure and the fixed costs associated with talent.

Rolling Stone reports that the decision was made after an internal audit, citing unnamed sources. Executives realized the club wasn’t bringing in enough money to cover salaries, overhead costs, and Marshmello’s retainer fee. Employees were promised bonuses that never materialized because the DJ fee was so high.

An internal memo said the hotel has decided to “take some time to reassess the programming and use of these venues going forward.”

So maybe hiring an internet DJ to a permanent two-year residency isn’t the best idea when people go to Vegas to see staples like Blue Man Group and Penn and Teller.

11 Responses

  1. Aussie Jack

    Staples Like The Blue Man Group And Pen & Teller?????
    Those shows are crap what are you rambling on about
    Lady GAGA’s show is perfection so is Jennifer Lopez
    Pen And Teller? When was the last time you saw those shows I’ve seen multiple 1star reviews for those shows?
    Jeasus Kaw is an amazing show
    Blue Man Group just sucks
    And that’s the trouble…
    As I view the landscape of Entertainment in Vegas with the absence of Celine I can’t see how Vegas can get through a down turn in the economy this time with out a strong headliner whos ticket prices are not astronomical.
    Vegas continues to devolve into smutty shows that are abstract and for shock value to pull in revinue however they are one serving shows for a Vegas Audience but not the repeat visitor
    Celine if you don’t know carried Vegas through the last recession for Cesars Palace and Vegas a task Marshmallow would not accomplish. Like Puppetry Of The Penis which is a real show how many times can you watch this? Unlike Abseinthe has some of the macabre but is not a show to see mutiple times, unlike Celine or Lopez.
    Now with the waning of Cirque as it enters 25th year for some shows as well as La Reve and the subsequent flood of shows from cirque who has also served Vegas well, opens Run at the Luxor to weak reviews though the show is pretty inventive, I believe we are seeing peak saturation and the end of an era of cirque.

    I’m honestly truly worried for Vegas Entertainment landscape they won’t try new blood because of the risk however 60m on Marshmallow is just as risky.

    Also does the closure of Kaos show another domino fall in the landscape of Vegas entertainment? The long awaited end of EDM which we have all been drenched in for years longer than the market wanted. An end foretold by Skrillex 5 years ago finally coming to fruition.

    Well see I guess…. and please pay this writer some vacation money get her out for some fun in Vegas see some shows that will entertain not blue man group.

    • Ted

      Quite a bit of rambling from someone who has never seen the shows he’s bashing. Blue Man Group are constantly innovating. Penn & Teller bring in new things to their show regularly. Both pull in crowds and the numbers to substantiate their existence. Reality check. Now that you’re done, check into a psych ward.

      • Aussie Jack

        Not really precious
        You can insult me all you like I’m obviously someone who cares and wants art to thrive and survive. Do you have any idea how many people are behind these shows
        Every area of entertainment that can’t take criticism are in the fast decline…
        I want it to thrive and prosper…
        You can keep the convo negative but it still stands the same!
        The shows in Vegas are in trouble
        You should sell ice cream instead of write articles Ashley you can’t take criticism you’ll never grow as an writer and that will be a good thing because your writing is crap.
        Now run along write something I cant reply to like you usually do Ashley and get a treat from your masters.
        The grownups are talking sweetie.

  2. Make Me A Bird

    How much time does she put in rebuking comments from people who use the site
    I’m going to write the editor every article she pens she trolls the commenters cowardly little girl.

  3. Jack Royale

    This is all a joke. Why on earth do clubs, venues, casinos and festivals pay DJS this kind of money to do nothing but spin records. Good for MM who’s just raking in the money but its all of you that boost his value and agree to pay these absolutely
    ridiculous fees.

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  5. Moe Sleezy

    I like the part where they called Marshemello an internet DJ