Pokagon Band of Potawatomi Indians Receives Financing

$400 mil Four Winds Casino Resort Outside New Buffalo, MI

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. October 14, 2008

MINNEAPOLIS, MN, June 23, 2006. Lakes Entertainment, Inc. (Nasdaq:LACO) announced today that on June 22, 2006 an affiliate of the Pokagon Band of Potawatomi Indians (Pokagon Band) closed on a $305 million senior note financing in addition to a $75 million commitment for furniture, fixtures and equipment to fund the Four Winds Casino project in New Buffalo Township, Michigan. In addition, Lakes simultaneously closed on a previously announced $105 million credit agreement through a wholly-owned subsidiary with Bank of America, N.A., as Administrative Agent and the Banc of America Securities, LLC (BAS) serving as sole lead arranger and sole book manager (BofA credit agreement).

Lakes, through a wholly-owned subsidiary, has management and development agreements with an affiliate of the Pokagon Band to develop and manage the Four Winds Casino. The Four Winds Casino will be an approximately 275,000 square foot full-service facility and is expected to include a 130,000 square foot gaming floor featuring 3,000 class III slot machines, 90 table games and a 20-table poker room; a 164-room hotel; six high-quality restaurants; three casino bars; a childcare facility and arcade; retail space; enclosed parking and other casino amenities. The Four Winds Casino will be the only land-based casino in the northern Indiana/western Michigan market.

Lyle Berman, Lakes' Chairman of the Board and Chief Executive Officer, stated, "We are very pleased for the Pokagon Band and congratulate them on securing the funds to develop the Four Winds Casino. We look forward to working with them to open the Four Winds Casino in the third quarter of 2007 and to help make it a tremendous success."

Approximately $25 million of the proceeds from the BofA credit agreement were used to repay in full Lakes' February 16, 2006 financing facility with an affiliate of Prentice Capital Management, LP (Prentice), and an additional approximately $22.5 million were used to fund Lakes' remaining obligation to the Pokagon Band. The remaining proceeds will be used for, among other things, funding the interest reserve under the BofA credit agreement, for Lakes' other casino development projects and for working capital purposes. All funds drawn under the BofA credit agreement bear interest at the rate of LIBOR plus 6.25% per annum (subject to change pursuant to the terms of the BofA credit agreement), are due and payable on the fourth anniversary of the closing and are secured by substantially all of the material assets of Lakes.

Tim Cope, President and CFO of Lakes, stated, "We have started construction of the Four Winds Casino and with the funds provided by the Lakes' credit agreement we will continue to move forward with our various other casino development projects. We will explore additional financing alternatives to fund future operations and development costs as needed. While we are allowed to sell up to three million shares of WPT Enterprises, Inc. (Nasdaq "WPTE") under the BofA credit agreement, we are no longer actively pursuing a sale of such shares."

As a result of repaying the Prentice financing facility in full without any additional draws, 1.25 million warrants issued to Prentice will remain outstanding and exercisable while approximately 3.21 million warrants issued to Prentice will lapse and not become exercisable.