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Since the club has been owned by Adam Gentile. It was founded in but the building was built a couple decades prior. One of the notable differences between the Palomino and other Las Vegas strip clubs, is that it is allowed to have both a liquor license, and totally nude dancers. Other clubs with liquor licenses are restricted to topless dancers. This difference, according to owner Luis Hidalgo Jr. In , a high-profile murder trial involved the Palomino Club owner's son, Jack Perry, who had shot and killed one of the employees he thought was trying to buy the club. He pleaded guilty and was sentenced to 14 years to life in prison. In , the owner of the "Olympic Garden" club sued the owners of the Palomino, claiming they conspired with cabdrivers to divert customers.
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It opened in and was the best-known country music club in Los Angeles for decades, closing in Lewis played there at least once a year from to Elvis Presley at least once strolled in unheralded and took in a set. In the late s and s, the Palomino began to feature more rock acts, including many artists associated with SST Records. Originally a "rather tough beer bar ,"  the Palomino, located at Lankershim Boulevard, was founded by Western swing bandleader Hank Penny and his business partner Amand Gautier, had originally opened the club around as the Palomino. Penny even staged "jazz nights" there where West Coast jazz musicians could come to jam. It was leased in  by Bill and Tom Thomas of Indiana, who later bought the club.
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