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Court Rules on Shingle Springs Project

CALIFORNIA -- (PRESS RELEASE) -- Lakes Entertainment, Inc. (Nasdaq:LACO) today announced that the United States District Court for the Eastern District of California has issued a favorable ruling with respect to the casino development planned by the Shingle Springs Rancheria.

This federal lawsuit was filed by El Dorado County (the county in which the reservation is located) and challenged the validity of the Environmental Assessment prepared under National Environmental Protection Act by the National Indian Gaming Commission, as required for the approval of the management contract, and as required by the Bureau of Indian Affairs for construction of the road which would allow access to the Rancheria and site of proposed casino project. The federal lawsuit also challenged the validity of the Tribe and the qualification of the Rancheria as Indian lands which would allow gaming. Favorable decisions have previously been reached by the federal court on both of those issues.

A separate California state court case regarding the project is pending. In that case, El Dorado County sued the California Department of Transportation to block construction of the Highway 50 interchange which would allow access to the Shingle Springs Band's Rancheria for construction of the casino under state environmental standards. A ruling by the trial court in that case is on appeal in the State of California's 3rd District Court of Appeal.

Lyle Berman, Chairman and CEO of Lakes stated, "We are extremely pleased with the Federal Court's decision, which puts the Tribe in a position to move forward with its casino project once the remaining lawsuit now pending in state court is successfully resolved." Mr. Berman continued, "We look forward to the successful completion of this project and see this favorable federal decision as a significant hurdle overcome in the process."

Lakes Entertainment, Inc. currently has development and management agreements with three separate Tribes for one new casino operation in Michigan and two in California. Lakes also has agreements for the development of an additional casino on Indian-owned land in California through a joint venture with MRD Gaming, which is currently being disputed by the Tribe. Additionally, the Company owns approximately 64% of WPT Enterprises, Inc. (Nasdaq "WPTE"), a separate publicly held media and entertainment company principally engaged in the development, production and marketing of gaming themed televised programming including the World Poker Tour television series, the licensing and sale of branded products and the sale of corporate sponsorships.

Lakes Entertainment, Inc. common shares are traded on the Nasdaq National Market under the trading symbol "LACO".

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