The fire started shortly after 11.30am on Monday.

Everyone who was in the building when the fire started was evacuated. 

Ambulance crews treated three people on scene.

Country Fire Authority Horsham Fire Brigade captain Mat Walsh said the north-facing part of the building was extensively damaged.

"The bowling alley has been saved," he said. 

"The tennis court area, kitchen area and upstairs area are extensively damaged."

The authority believes the fire started in a deep fryer in the kitchen.

It then spread to the roof and other areas of the building 

Five trucks and a number of support vehicles from Dimboola, Dooen, Horsham, Noradjuha and Warracknabeal are on scene.

Horsham man Len Cinoris spotted the smoke from his home.

"I saw the smoke and I thought it was a house on fire," he said.

"The fire brigade and the police are there.

"There are three or four fire trucks."

He said after a closer look he could see the blaze engulfing the centre.

"There were flames coming out the roof," he said.