'Crash Palace' is an Underworld Robot Boxing Arena where robots can use illegal moves to compete.
The Crash Palace is an underground Robot Boxing venue owned and operated by Finn, a friend of Charlie Kenton. Charlie and Max Kenton fight with bot Noisy Boy there. After a failed effort by Max to save his father's money Charlie takes a fight with Midas. Losing this battle, Noisy Boy's head is welded into the Crash Palace wall by Finn.
It seems that the Crash Palace was once a Factory of some sort, there was dozens of Robot Arms commonly used in factories along both paths to the center ring. Also in the room where Charlie gives Max the Hamburger, there is a giant walkway crane (you'll understand if see that clip) also used in factories.
Near the exit, there are various decapitated robot heads. When Noisy Boy lost, his head joined them as Charlie and Max left.
The crowd is normally large with viewing areas including balconies and the ground area. The boxing ring is enclosed by a chain fence. The ring is composed of metal scraps welded together. There are often many small fights before one main event, such as Midas vs. Noisy Boy. Before-hand Finn takes bets and organizes fights in the front room. A tournament bracket is set-up behind Finn's area.