The blaze on the promenade started last night, with passers by who were watching on.
Multiple videos circulating online show the popular tourist attraction ablaze.
The company have posted to say that the fire was caused by an electrical fault on an external light on it's facade.
A spokesperson for Lancashire Fire and Rescue Service said:
"Four fire engines from Blackpool, South Shore and Bispham were called to a fire at a commercial property on the Promenade, Blackpool.
"Firefighters used two hose reels, ladders and thermal imaging cameras to extinguish the fire on the roof.
"Firefighters were at the scene for nearly two hours. The fire investigation begins this morning."
Witnesses say that the fire service arrived within minutes of the fire starting and were able to extinguish the blaze with no reported casualties.
Coral Island and the promenade is open as usual.