Maryland Board of Public Works Approves Rocky Gap Transaction

  Maryland Board of Public Works Approves Rocky Gap Transaction

Business Wire

MINNEAPOLIS -- June 21, 2012

Lakes Entertainment, Inc. (“Lakes”) (NASDAQ:LACO) announced that the Maryland
Board of Public Works (“Board”) approved the Maryland Economic Development
Corporation’s sale of the Rocky Gap Lodge & Golf Resort in Cumberland Maryland
(“Rocky Gap”) to Evitts Resort, LLC (“Evitts”), Lakes’ wholly owned
subsidiary. The Board also approved the lease between the Maryland Department
of Natural Resources and Evitts for approximately 260 acres of real property
on which Rocky Gap was built. The closing of these two transactions, which is
expected to occur within 60 days, is necessary for Evitts to construct the
50,000 square foot gaming facility at Rocky Gap. Evitts was previously awarded
a video lottery operation license for Rocky Gap by the State of Maryland Video
Lottery Facility Location Commission. Evitts intends to expand upon the
existing four-diamond Rocky Gap Lodge & Golf Resort, which includes a 215-room
hotel, convention center, spa, two restaurants and the only Jack Nicklaus golf
course in Maryland, by initially constructing approximately 50,000 square feet
of new space featuring a minimum of 850 video lottery terminals, an expansion
of parking including the construction of a parking ramp, a new restaurant and
a live-entertainment bar.

Lakes Entertainment’s Chairman and Chief Executive Officer, Lyle Berman
stated, “We are very pleased that the Board of Public Works approved the asset
purchase and the lease for the Rocky Gap project. This removes the final
regulatory hurdle for us to commence construction. We look forward to closing
on financing so we can start construction, which we anticipate will take
approximately 10 to 12 months to complete.”

About Lakes Entertainment

Lakes Entertainment, Inc. currently has a management agreement with the
Shingle Springs Band of Miwok Indians to manage the Red Hawk Casino. Lakes has
an investment in Rock Ohio Ventures, LLC for their casino developments in
Cincinnati and Cleveland, Ohio. Lakes’ subsidiary Evitts Resort, LLC, has been
awarded a video lottery operation license for the Rocky Gap Lodge & Golf
Resort in Cumberland, Maryland which is contingent on Evitts obtaining
construction financing.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor
for forward-looking statements. Certain information included in this press
release (as well as information included in oral statements or other written
statements made or to be made by Lakes Entertainment, Inc.) contains
statements that are forward-looking, such as statements relating to plans for
future expansion and other business development activities as well as other
capital spending, financing sources and the effects of regulation (including
gaming and tax regulation) and competition. Such forward-looking information
involves important risks and uncertainties that could significantly affect
anticipated results in the future and, accordingly, such results may differ
from those expressed in any forward-looking statements made by or on behalf of
the company. These risks and uncertainties include, but are not limited to,
need for potential future financing to meet Lakes’ development needs; those
relating to the inability to complete or possible delays in completion of
Lakes' casino projects, including various regulatory approvals and numerous
other conditions which must be satisfied before completion of these projects;
possible termination or adverse modification of management or development
contracts; Lakes operates in a highly competitive industry; possible changes
in regulations; reliance on continued positive relationships with Indian
tribes and repayment of amounts owed to Lakes by Indian tribes; possible need
for future financing to meet Lakes' expansion goals; risks of entry into new
businesses; adverse litigation results and the related costs; and reliance on
Lakes' management. For more information, review the company's filings with the
Securities and Exchange Commission.


Lakes Entertainment, Inc.
Investor Relations:
Timothy Cope, 952-449-7030
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