Showy sites of entertainment in buildings around America (7)
I believe the answer is:
'showy sites of entertainment' is the definition.
I can't tell whether this definition defines the answer.
'buildings around america' is the wordplay.
'buildings' becomes 'spas' (spa is a kind of building).
'around' says to take the centre.
'america' becomes 'laces' (I am not sure about this - if you are sure you should believe this answer much more).
The centre of 'spas' is 'pa'.
'in' acts as a link.
Can you help me to learn more?
(Other definitions for palaces that I've seen before include "kings and queens here?" , "Royal residences" , "Offical residences of sovereigns" .)