Lakes Entertainment Announces Passage of Ohio Referendum

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.'

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