A virtual reality arcade on the Las Vegas Strip has filed for bankruptcy after just one year in business, facing eviction and millions in unpaid claims, according to court documents.
The Electric Playhouse, a 10,000-square-foot gaming and dining venue inside Caesars Palace, filed for Chapter 11 bankruptcy on Monday. The company requested an accelerated hearing to ensure employees are paid on Friday.
The venue uses sensors to track guests' movements, creating digital avatars for interactive games without controllers. It opened in 2024, three years after the first location in Albuquerque, New Mexico.
Court filings show assets between $1 million and $10 million, with unsecured creditors unlikely to be paid after administrative fees. No reason was given for the financial troubles, and the company's attorney could not be reached.
Las Vegas tourism has declined, with an 11% drop in visitors in June 2025 compared to the previous year, and hotel occupancy falling by 15%, according to the Las Vegas Convention and Visitors Authority. However, many businesses view this as a post-pandemic normalisation.
