Green’s Dictionary of Slang

(Aus./US) a brothel.

1934		C. Stead Seven Poor Men Sydney 45: ‘Want to have a good time? I’m going to take a young chap over from Melbourne to a funny house, where I know the madam’ [Simes:DLSS].
1962		P. Crump Killer 183: The whoah’s in de fun house spread for Crow [HDAS].
1966		G. Wyatt Strip Jack Naked 34: He had no identity card, having recently lost it while escaping from a Fiji funhouse [Simes:DLSS].