From today, Sammys Entertainment, in Crawford St, will be offering such things as gladiator jousting, bouncy boxing, sumo wrestling, and slam dunk basketball - all within an environment featuring lots of air and heavy-duty PVC.
The bouncy boxing involves oversize inflatable gloves and the gladiator jousting "big blow-up cotton buds".
One of the two men setting up the new venture, clinical psychologist Roger Shave, told the Otago Daily Times that the venture was designed particularly with adolescents and young adults in mind.
"We take over where Chipmunks leaves off."
The activity area takes about an hour to inflate and will be deflated for the occasions when Sammys is being used as a music venue.
The idea came from fellow-director and venue manager Sam Carroll, who believed young Dunedin people were looking for leisure activities in which they could be actively involved.
"People of all abilities can have fun without needing to step right up to the level of professional sport that is more organised."
The centre, known as "Big Ups", was trialled successfully with children during the Cadbury kids' holiday programme. It is alcohol free.
Mr Shave said, as a parent and through his work as a psychologist, he was aware of the needs of youth.
"I've got teenage kids and I was acutely aware of the lack of options in town. Once you've done the old paintball and Laser Force, what else is there? You can only go up Baldwin St so many times before you are looking for something else, entertainment-wise."