Lakes Entertainment Announces Passage of Ohio Referendum

MINNEAPOLIS--(Business Wire)--
Lakes Entertainment, Inc. (NASDAQ: LACO) today announced that on November 3,
2009, the Ohio voters approved Issue 3, the citizen-initiated referendum to
amend the Ohio constitution to authorize one gaming facility in each of
Cleveland, Cincinnati, Columbus and Toledo, Ohio. The approval of Issue 3
authorizes casino gaming for the first time in the State of Ohio.

Issue 3 was primarily backed by Rock Ohio Ventures, LLC ("Rock"), a group led by
Dan Gilbert, owner of the Cleveland Cavaliers, and Penn Ventures, LLC ("Penn"),
a subsidiary of Penn National Gaming, Inc. Lakes recently reached an agreement
with Penn whereby it (1) agreed to fund 10% of Penn`s costs of the Issue 3
referendum ("Referendum") and (2) has the option, but not the obligation, to
fund up to 10% of equity required to develop potential casinos in Columbus and
Toledo, in return for a corresponding equity stake up to 10% in such casinos.
Similarly, Lakes recently entered into an agreement with Rock whereby it has the
right, but not the obligation, to invest up to 10% of Rock`s costs of the
Referendum and the equity required to develop potential casinos in Cleveland and
Cincinnati, in return for a corresponding equity stake of up to 10% in such
casinos.

"We are pleased that the voters of Ohio approved Mr. Gilbert`s and Penn`s casino
plan which is expected to bring thousands of jobs and millions of dollars to the
State of Ohio," said Tim Cope, president of Lakes Entertainment. There is still
much work to do before these casinos become a reality, but we believe this
investment will add value to our company which will benefit our shareholders for
many years to come."

About Lakes Entertainment

Lakes Entertainment, Inc. currently has development and management or financing
agreements with four separate Tribes for casino operations in Michigan,
California, and Oklahoma, for a total of five separate casino sites. Lakes is
currently managing the Cimarron Casino for the Iowa Tribe of Oklahoma, the Four
Winds Casino Resort for the Pokagon Band of Potawatomi Indians and the Red Hawk
Casino for the Shingle Springs Band of Miwok Indians. Lakes is also involved in
other business activities, including the development of new table games for
licensing to Tribal and non-Tribal casinos.

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; and reliance on Lakes' management.
For more information, review the company's filings with the Securities and
Exchange.

Lakes Entertainment, Inc.
Timothy Cope, 952-449-7030

Copyright Business Wire 2009