

In March 2005, Maloof announced that the Palms would add a concert theater to better compete with the Hard Rock Hotel. The Pearl Concert Theater was built out in a crescent shape, with the furthest seat being only 120 feet from the stage. The venue spanned three floors and had seating for 2,400 people. Three screens from the resort's movie theater had to be relocated to make way for the Pearl. The venue was wired into the Palm's recording studio, allowing performers to record live albums.
The Pearl opened on March 17, 2007, with a concert by Evanescence. The official grand opening took place on April 21, 2007, with a concert by Gwen Stefani. The Pearl hosted various other entertainers, including Lady Gaga, Lady Antebellum, and Billy Idol. In 2009, the Pearl hosted a four-night concert residency by Mariah Carey known as Live at the Pearl.
The theater hosted the NHL Awards for three consecutive years, starting in 2009. The Pearl also hosted Ultimate Fighting Championship (UFC) cards each year, until UFC president Dana White had his credit line reduced at the Palms casino. White had been a frequent gambler there, and he pulled all future UFC events from the venue in 2012, after his falling-out with the casino.
The venue was closed in 2017, for a months-long renovation. It is operated by Live Nation. The Pearl was closed during the COVID-19 pandemic, and reopened on September 1, 2022.
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