In 1972 the Knapps sold the Magic Carpet. The carpet was taken out and the attraction was renamed Magic Palace. This name worked well as they could re-use the old “CARPET” letters “P”, “A”, “C”, and “E” on the arched neon sign and turned the “T” over and made an “L” out of it to spell “Palace”. When they removed the carpet they brought in some new stunts to replace it, being jail bars with mirrors that you had to navigate around, while there was strobe lights flashing.

When you finally made it through these you walked down a hallway with a 6 foot high rotating disc painted fluorescent, lit by black lights and although the board was flat, gave a very clever illusion of a large cone pointing right at you, much like 3D movies do today! These stunts were also attributed to Bill Tracy.

In the 1980’s, as much of the park did, the Magic Palace took on drab colors of cream, brown and orange. In the end The Magic Palace was the third oldest attraction in the park beside the Giant Coaster, 1916 and the Laff in the Dark 1934. Millions of people had gone through her and she had lost much of her appeal.