Lakes Entertainment Announces Buy-Out of Management Contract with Pokagon Band of Potawatomi Indians

Lakes Entertainment, Inc.

announced today that the Pokagon Band of Potawatomi Indians exercised its right to buy out the remaining term of the Third Amended and Restated Management Agreement between the Band and Lakes for the management of the Four Winds Casino Resort, which was scheduled to expire on August 1, 2012. Pursuant to the Buy-Out and Termination Agreement, on June 30, 2011, the Band paid to Lakes a buy-out fee of approximately $24.5 million and repaid in full all outstanding debt owed by the Band to Lakes. As a result of the previous sale of those receivables, Lakes did not receive any of the proceeds from the Band's repayment of that debt. The Buy-Out Agreement also terminated the Management Agreement resulting in Lakes having no further obligations or responsibilities with respect to the Casino.