When in Vegas... either visiting or as a local with kids Fun Dungeon should be on your list of things to do. Located in the basement of the Excalibur Hotel Casino The Fun Dungeon is fun for all ages. Many of the games are newer and interactive. They also have a few merchandiser games that offer some skill and challenge in order to win prizes. Most games will also dispense tickets for winning. These tickets can be used to get all kinds of over priced toys that you can just go and buy at the store for a few dollars.
Overall this place is worth spending an afternoon and a few Jackson's to entertain the little ones in between the adults playing some table games or slots upstairs.