The Friars Vennel property was purchased in 1987 and has been run as an amusement arcade for 37 years.
However, a planning application has now been lodged to relocate the business away from the River Nith.
A supporting statement said the current property had been “significantly impacted” by flooding on “numerous occasions”.
It said they had taken steps to try to deal with the disruption caused – including the installation of barriers.
However, their insurance broker told them seven years ago that flooding cover for the property could not be obtained.
In December 2022, the building suffered the worst damage in its history and that prompted a review of the future of the business.
The old shoe shop at 97-99 High Street was recently purchased with a view to relocating in Dumfries.
The applicants said the new use could contribute to the “viability and vibrancy” of the town centre.
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