The most common and most likely answer to this crossword clue is the 3 plus 9 letter word BAR BILLIARDS
I've seen this crossword clue in The Times
B
A
R
B
I
L
L
I
A
R
D
S
Buddy explains!
The straight part
We know that "local amusement" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case local amusement = bar billiards.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.