This term refers to the ambient of a party/social gathering that has evolved (through use of substance and lack of judgment) into a setting for salaciousness and other forms of debauchery.
In
George Lucas' (1983) Return of the
Jedi, we see that the palace is home to a plethora of deviants from all corners of the
galaxy thus promoting indulgences from many different worlds.
"Hey did you go to toms house party last week?"
"Yeah, that
joint was like Jabba's palace, I think I may have caught
something from one of the
girls there." *scratches crotch*