Electric Playhouse, a sophisticated interactive entertainment complex at The Forum Shops at Caesars Palace on the Las Vegas Strip, filed for Chapter 11 bankruptcy protection after operating for just 16 months. Parent company Albuquerque-based Electric Playhouse NV LLC made its filing in the U.S. US Bankruptcy Court for the District of Nevada on Oct. 20, listing assets and liabilities between $1 million and $10 million. The filing is the newest casualty of Las Vegas’s ongoing tourist slump, which has seen a significant drop in visitor traffic throughout 2025.
The court documents reveal that the company is facing over $4.4 million in total claims from its 20 largest unsecured creditors, and the venue is also dealing with an imminent eviction from its upscale location on the Terrace Level of The Forum Shops. The bankruptcy petition requested motions be heard on an expedited basis to ensure current employees are paid wages by Friday, citing the immediate financial crisis the operation is facing.
Understanding the Electric Playhouse concept
The enormous 10,000-square-foot entertainment complex opened on June 22, 2024, with dozens of motion-activated games and immersive experiences that leverage sensors and 360-degree projection mapping to transform walls, floors, and tables into interactive digital environments. Electric Playhouse contains no gambling found in conventional casinos. Rather, the building is permeated with a network of sensors that generate a real-time point cloud, enabling precise tracking of individuals and big groups of people across the building.
The guest movements serve as controllers, and there are no headsets or handheld devices required. The volume of data that is generated provides each guest with a digital twin, similar to a video game player, and the space responds to what they are doing in various ways. The venue also contains Electric Elixirs, a restaurant and bar offering chicken wings, tenders, wraps, salads, individual pizzas, and desserts like Dubai chocolate bars, with an outside patio overlooking the Strip.
CEO and co-founder Brandon Garrett stated at the venue’s opening that “In a world where passively sitting in front of screens with video games, smartphones, VR and TV is all too common, Electric Playhouse provides an active, social and energetic entertainment alternative.”
Las Vegas tourism decline impact
The Electric Playhouse bankruptcy filing comes as Las Vegas is facing a steep drop-off in tourism that has put extreme pressure on hospitality and entertainment companies along the Strip. Tourism in Las Vegas had slowed down considerably in the summer of 2025, with June 2025 alone seeing a drop of 11 percent compared to the same month the previous year, right when the new Electric Playhouse opened. The hotel occupancy rate also fell by approximately 15 percent during the period, according to Las Vegas Convention and Visitors Authority reports.
Las Vegas has experienced six consecutive months of falling visitor traffic in 2025, with the first half of the year down 7.3 percent from the same period in 2024. Through July, the Strip hosted more than 22.6 million visitors, down 2 million from the same period last year, an 8 percent decline. Observers cite a number of reasons for the slowdown, including higher prices, reduced Canadian travel due to immigration policies, California wildfires deterring travel, and the absence of tentpole events like March Madness and the Super Bowl that supported 2024 numbers.
Incomplete filing and current status
The bankruptcy clerk filed a notice on Tuesday that Electric Playhouse NV’s petition was incomplete, missing numerous financial statements, creditor lists, and disclosures. The company has limited time to cure the deficiencies or risk dismissal of the case. Despite the bankruptcy filing, as of Tuesday morning Electric Playhouse remained open to the public, and staff were unaware of any pending change to its business hours.
The court filings did not give a specific reason for the company’s financial difficulties, and the company’s lawyer could not be reached for comment. The company has stated that it will not have funds to repay unsecured creditors after administrative expenses relating to the bankruptcy are paid.
