The shocking ending requires some elaboration.
SCREENRANT VIDEO OF THE DAY SCROLL TO CONTINUE WITH CONTENT Summary The 1970s-set found-footage movie Late Night with the Devil introduces possession horror to late-night television, and chronicles a slow-burn tale of terror that ends in horrifying fashion.
Jack's Visions In Late Night With The Devil Explained A terrifying journey into Jack's memories Close Throughout Late Night with the Devil, Jack Delroy's backstory is slowly revealed, largely in a 1970s-styled voiceover and montage at the beginning of the movie, with further details coming over the course of the episode's footage that makes up the movie.
The visions revealed that the men's club Jack belonged to, referred to as The Grove, had connections to the Satanic church that Lilly was rescued from. That explains why the demon that possessed Lilly knows Jack: they had previously "met" at one of the ceremonies. The Grove is described as having a number of wealthy and powerful members, and it's implied that they owe their success to worshiping the devil and conducting sacrifices.
Is Jack a good man who has been struck by tragedy, or is he so desperate for success that he would sacrifice anything to achieve it? That entity was the aforementioned Mr. Wriggles, whose torment of Christou indicated he may have had legitimately heightened psychic connections. The alternative is that Mr. Wriggles tormented him specifically because of his fraudulent claims, although it's never specified what the real cause is. Mr. Wriggles continued to torture Christou until he vomited an unidentified black goo, which is a common trope in exorcism movies.
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