Kaos closure may signal challenges for Las Vegas club scene Bailey Schulz, Las Vegas Review-Journal · November 7, 2019 at 8:17 pm No party lasts forever. The sudden shutdown of Kaos nightclub and dayclub could be pointing to a broader slowdown of Las Vegas’ club scene, according to experts. On Tuesday, Red Rock Resorts executives revealed the company was shutting down the Palms’ nightclub and dayclub, effective immediately. While experts say the Palms’ venue faced some unique challenges, its closure comes as the nightlife industry in Las Vegas faces major challenges, with shifts in profitability and customer demand. “Customer demand has seemingly peaked in recent years and competition has only proliferated,” said Deutsche Bank gaming analyst Carlo Santarelli.