An Bord Pleanála has refused planning permission for an indoor sports and recreation centre at 33 Church Street, Listowel.
The development by BM Funworld Limited involved the change of use from the existing ground floor retail shop.
The proposed development also included an internet café and console gaming stations.
However, an Bord Pleanála refused permission because the site lies within the recently contracted retail core area in Listowel town centre.
Under the Listowel Town Development Plan, the Planning Authority undertakes to resist the loss of retail floorspace, in the interests of the viability and vitality of the town centre.