The fire started in the old orchestra pit, it is believed
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Fire investigators are to try to find out how a blaze started at a Grade II-listed building.
About 30 firefighters tackled flames which broke out at 2330 on Friday at the former Walkers bingo hall on Green Lane, Derby.
The building was previously the Hippodrome theatre.
A spokesman for Derbyshire Fire and Rescue Service said the cause of the blaze was not known and the scale of the damage was not clear.
John Hague, who lives nearby, said: "The fire seems to have started in the old orchestra pit and stage area. The flames have gone right through to the roof.
"But from what a fireman told me, it's not a total wreck."
There have been moves to return the building to a theatre. Derby New Theatre Association, which represents amateur theatre groups in the county, tried unsuccessfully to buy it when it closed as a bingo hall.
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