The Game Beef with 'Racist' Hollywood Club Settled

5/18/2014 5:18 AM PDT

The Game went clubbing at Lure in Hollywood Saturday night ... the same club he accused of working with the LAPD to block out minorities -- and he insinuates they paid him off.

As we previously reported, Game said he was persona non grata at Lure -- where the popular Toxic event takes place every week  -- after the LAPD and club management agreed to make minorities and rappers unwelcome -- a claim which both the LAPD and Lure deny.

Game says he met with promoters for the club and everyone apologized.

A rep from Lure tells TMZ ... they did pay Game, but they made it seem like it was an appearance fee and not a settlement.

Check out the video to hear him explain the payment situation.