It's stated in this episode clearly that Blackgaard actually owns the Electric Palace.
- Who Knows

Jack Allen: It’s hard to understand how a mind like Dr. Backard's works. I'd hoped to help him change it, one last chance. But a soul so corrupted, so satured in evil can only come to one end without Jesus is destined for the Finial Conflict and an eternity without God.
- MDB17

Jack: You can't win, Dr. Blackgaard. You know that. You must give yourself up.
Blackgaard: Oh, please. You're as cliched as Jason!
Jack: You have nowhere left to go. The building is sealed off in all directions.
Blackgaard: Ah, you've obviously found my little escape tunnel in the woods.
Jack: I've been walking around the park a lot lately; you're trapped.
Blackgaard: Not if I use you as a hostage.
Jack: I'm sorry. I won't go along with that.
Blackgaard: Would you rather die?
Jack: I'm not afraid to. I'm prepared for death. How about you?
Blackgaard: Ah, I see. Brave Jack Allen, Christian soldier to the end, stops the evil Dr. Blackgaard, and saves the world!
Jack: I'm not here for the world, doctor. I'm not here to save Odyssey, or even Whit's End. I'm here for you. For your soul. That's the only thing that matters right now. Not money or power or viruses or computer programs or world terrorism. It all comes down to your soul. Why don't you put down the detonator so that you'll have time to redeem your soul?
Blackgaard: The floor on your proposal is that you assume my soul is redeemable. It isn't. I auctioned it off years ago.
Jack: Then you sold yourself cheap. Your soul is worth the life of Jesus Christ. To give it to anyone else would be an incredible waste.
Blackgaard: Well, as much as I enjoy philosophizing with you about abstracts, we have a very real dilemma here.
Jack: It's not a dilemma if you do the right thing.
Blackgaard: Oh, but it is! Giving up is something I cannot and will not do.
Jack: I'm not leaving without you.
Blackgaard: And I'm not leaving with you.
Jack: Then we're at a stalemate.
Blackgaard: Oh, not at all. I still have the queen: this detonator. And I have nothing to lose by using it. You see, my dear Jack, my illness isn't an act.
Jack: What?
Blackgaard: I have a virus.
Jack: Hmm. Ruku?
Blackgaard: Then Jason told you. Yes, it appears somewhere along the line I was exposed to a strain of it. And I will not die that kind of death. It's pointless! So I'd suggest you run for your life.
Jack: You don't want to kill me.
Blackgaard: Oh, you fool! Why wouldn't I? Goodbye, Jack Allen!
- Waluigi Freak 99