One of Australia's oldest indoor playlands to close after 25 years

One of Australia's longest-running playlands is set to close its doors after 25 years of operation.

Megamania opened at Warners Bay near Newcastle in September 1997, the same weekend the Knights won the ARL grand final.

The play empire business, run by Ken and Kath Smith, welcomed 450 children on day one.

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Their inspiration for the venture came nine months earlier, on a holiday to Queensland with their preschool-aged children.

"We discovered a playland, and the kids absolutely loved it," Ken Smith told 9News.

"We thought this was something that we could do. It was early days, there were very few in Australia."

Moving to Charlestown in recent years, the Megamania Playland and Cafe will close its doors on January 29, when its lease runs out.

"It's - as far as I know - the longest-running playland in Australia.

"It's been a journey but it's come to an end."

The ongoing challenges of the pandemic and rising costs have contributed to the decision.

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"We were looking to exit, or pass it on to somebody in 2019," Mr Smith said.

"Obviously COVID has had a huge effect.

It is a sad revelation for the business's 18 staff and generations of Hunter families.

"The kids have so much fun," mother Hannah Bull told 9News.

"We've been coming for 23 years, all up, so it's very sad."

Over a quarter of a century, the playland has hosted more than 25,000 children's birthday parties in addition to christenings and even a wedding.

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Megamania's legacy is not only to the Hunter region but further afield, as the Smiths say they helped develop Australian standards for indoor playgrounds.

The pair will continue the fun through Megamania Amusements, providing rides at other venues, which means it's more 'see you later' than farewell to families.

"Thank you, Newcastle," Ken told 9News, tearing up.

"You've made us an icon and it's been great."