The Grosvenor Casino on Merrion Way in Leeds, will shut for good next month.
Its parent company Rank said it was closing the venue and concentrating all of its efforts into the other casino it owns on Westgate, which is currently being refurbished.
There was no immediate figures regarding job cuts but The Yorkshire Post understands that, while there will be some redeployment of staff to other casinos, there will be some job losses as a result of the move.
A statement from Rank said: “We can confirm that we will be closing one of our casinos in Leeds, Grosvenor Casino Leeds Arena (Merrion Way). The club is due to close in September.
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“The reason for the closure is that the landlord has decided not to renew our lease.
“Our team members are going through a consultation process and will have the opportunity to seek alternative positions throughout the Rank Group, including within our Grosvenor Casinos throughout the UK, as well as our sister brand, Mecca.
“We have a second casino in Leeds, Grosvenor Casino Westgate and we will be refurbishing that site over the coming months to ensure we provide an even more exciting casino experience for the people of Leeds.”
The closure is bad news for city’s Arena Quarter which has enjoyed a successful regeneration since the music venue opened in 2013.
The shutting of the casino comes as Leeds prepares to welcome a so-called “super casino” in the Autumn at the new Victoria Gate complex.
The casino, which will be the third largest in the UK when it opens will be called the Victoria Gate Casino and employ more than 200 people across a 50,000 sq ft establishment which can house 1,400 people.
It will also boast one the biggest poker rooms in the country, alongside 24 gaming tables, 140 slot machines as well as 80 electronic table games.
The decision to close the casino by Rank comes eight years after it shut a third casino it owned in Leeds.
The Grosvenor Casino in Moortown had been open for 40 years before the owners closed it.