Electric Playhouse, the huge virtual arcade on the Las Vegas Strip, closed its doors for good. It subsequently filed for bankruptcy only a year after opening when their operations were not sustainable. The entertainment venue, which opened in June 2024, faced significant financial challenges, including pending eviction and millions in unpaid claims as detailed in court documents.
The 10,000-square-foot gaming space was a test bed of creative design. It used an array of sensors to monitor guests’ movements, allowing them to produce digital avatars comparable to characters in an online game. This one-of-a-kind idea is sure to attract tourists to Las Vegas. The city is most known for its opulent performances and 24-hour gambling. Yet, in spite of its state-of-the-art attractions, Electric Playhouse was unable to come out ahead financially.
Electric Playhouse subsequently filed for Chapter 11 bankruptcy, listing assets of $1 million to $10 million. That’s only because, after paying administrative claims from the bankruptcy proceedings, they simply can’t afford to pay unsecured creditors anything. Tourism in Las Vegas is at an all-time low. By the end of June 2025, the hotel occupancy declined by about 15% and visits were down 11% from the same time last year. This loss of visitors was felt especially deeply by international travelers.
The nearly 98% drop in foot traffic during summer months has had many local businesses biting their nails. Resorts and convention centers told a much bleaker picture this year with many venues seeing drastically reduced attendance this year, leading many venues to scan their operational playbook. The obstacles Electric Playhouse has been contending with are a reflection of these continuing, enormous challenges that our tourism economy is realizing.
After Electric Playhouse filed for bankruptcy, the company asked the court for an expedited hearing on its motions. This will help make sure that federal workers no employees missing paychecks on Friday. The financial crisis has hit our staffers hard as well. Their wages are their lifeline and they need that paycheck to make ends meet day-to-day, further intensifying their plight.
Electric Playhouse opened in June 2024 as the brand’s second outpost. The first of its kind opened its doors in Albuquerque, New Mexico, way back in 2021. This addition of high operational costs and a lack of consumer interest has been a deadly combination for the venue’s long-term viability.
