I'm not sure why, but it took me a couple of tries before I figured out what I needed to do. Once you know how to beat him it is quite simple.
After the lights dim and his female assistant apear, grab a bottle of alcohol from the chest and hit her with it, then zap her with your taser. She will burn to a crisp.
There are 3 podiums which the Magicman will stand on and make an ass of himself for a few moments. Each time he shows up on these podiums hit him with a bottle of alcohol. Eventually he will appear inside the cage above the spikes.
Pull the lever near the spikes while he's in there and he will fall to a skewered death.
Damn that Magicman.
