LAS VEGAS -- A legendary Las Vegas hotel has put up a permanent no vacancy sign.

Binion's Gambling Hall & Hotel will close its hotel on Dec. 14, the owners announced Monday. The casino and other operations will remain open, reported KVVU-TV in Las Vegas.

Binion's said the reason for shutting down its 365 rooms was because of the slumping economy. The downturn had forced room rates to drop and vacancies to rise.

"It's the downturn," said Lisa Robinson, spokeswoman for TLC Casino Enterprises Inc., owner of the 58-year-old property. "We had to make some difficult decisions in order to keep the rest of the property operational."

Binion's, also known as Binion's Horseshoe, opened in 1951 after colorful owner Benny Binion moved to Las Vegas from Texas and bought the Apache Hotel and Eldorado Club.

Even though the casino will stay open, there's no question it will be a blow to a downtown that has struggled -- even during the talks of revitalization.

It's been a staple on Fremont Street for more than half a century. Word of the closure spread quickly.

“I was a little concerned because I know this is a historical place, and I would like to see it remain the same. And I know with the economy being as it is, it's sort of hard, but I think it's important enough for them to preserve history,” said Cassius Miles, of Las Vegas.

Binion's original coffee shop and Keno operation will also end, but the entire casino operation -- including the sports book and the famed poker room which hosted the World Series of Poker from 1970 to 2005 -- will stay open.

But the hotel closure could affect gaming.

Rodney Anderson was staying at Binion's on Monday, and he said he wanted to stay and play when he comes to Las Vegas.

“Why should I be wasting my money at Binion's when I'm not getting any comps for the hotel rooms?” Anderson said.

Mayor Oscar Goodman said he was trying to help Binion's owners and lenders hammer out a deal to keep the hotel open. He said he does not think this will affect his plan to revitalize downtown.

“Once you start saying you're not going to do those things, then you recede. Vegas is a very funny place. We go through these ups and downs. We've been here before, perhaps not to this level, but I don't blame this on Las Vegas. Las Vegas has the infrastructure in place. We've got the best hotels, restaurants, shopping and entertainment,” Goodman said.

Goodman said it's hard to find investors to come in with fresh money to refurbish rooms, but he's not giving up.

“We have to keep pushing forward, now more than ever,” Goodman said.

About 100 people will be laid off when the hotel closes.

Anyone who has a reservation after Dec. 14 will be referred to Binion's sister property across the street, The Four Queens.

Most of the restaurants, including the famed Binion's Ranch Steakhouse, will remain open.