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Theaters were--and in some places are--often referred to as 'houses'. We've all seen the cartoons in which the character asks the audience of the cinema if "There's a doctor in the house". This simply branched out to all venues as a business term, and since only the attendants in the venue get to see the non-televised events, they are deemed "House Shows". Or, to put it more succinctly, It's a "House Show", because only those in the house get to see it.
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