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EXHIBIT 99.1
Monday January 4, 10:09 pm Eastern Time
COMPANY PRESS RELEASE
LAKES GAMING, INC. ANNOUNCES
COMMENCEMENT OF TRADING ON
NASDAQ-AMEX UNDER SYMBOL "LACO"
MINNEAPOLIS--(BUSINESS WIRE)--Jan. 4, 1999--Lakes Gaming, Inc. (Nasdaq-Amex:
LACO) today announced commencement of trading on the Nasdaq-Amex Stock Market.
Lakes was formed on December 31, 1998, via a distribution of common shares to
the shareholders of Grand Casinos, Inc. Grand Casinos shareholders received .25
shares in Lakes for each share held in Grand Casinos. Concurrent with the
tax-free distribution of Lakes shares to Grand Casinos shareholders, and the
merger of Grand Casinos' Mississippi assets with Park Place Entertainment, Grand
Casinos shareholders also received one full share of Park Place Entertainment
Corporation (NYSE: PPE - news) for each share held in Grand Casinos. There are
approximately 10.5 million shares of Lakes outstanding.
Lakes operates the Indian casino management business and holds various other
assets previously owned by Grand Casinos, Inc. The casino resorts managed by
Lakes are Grand Casino Avoyelles and Grand Casino Coushatta. The casinos are
managed under separate agreements on behalf of two different Tribes. Both
management contracts expire seven years from the date the casino opened.
The opening balance sheet of Lakes includes assets of approximately $160 million
and liabilities of approximately $25 million. Pro Forma 1998 revenue for Lakes
will be between $90 million and $95 million. The related Pro Forma 1998 earnings
for Lakes are expected to be between $5.70 and $5.80 per share. These Pro Forma
results include approximately $37 million from Grand Casinos' management
contracts for Grand Casino Mille Lacs and Grand Casino Hinckley that concluded
during 1998. Lakes revenues and earnings will not include contributions from
these operations going forward. Lakes anticipates reporting year-end results for
1998 before the end of January 1999.
The assets of Lakes are comprised of approximately $61 million in cash
(restricted and non-restricted), $50 million in notes and accounts receivable,
$32 million in Las Vegas land development costs, and $17 million in other
assets. Liabilities include various obligations such as accruals for start up
costs, litigation reserves, deferred taxes, and taxes payable.
Lyle Berman, former Chairman of Grand Casinos, is the Chairman of the Board and
Chief Executive Officer of Lakes. Other senior management includes Thomas
Brosig, former President of Grand Casinos, who will serve as President of Lakes,
and Timothy Cope, former
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Chief Financial Officer of Grand Casinos, who has assumed the position of Chief
Financial Officer of Lakes. The Board of Directors of Lakes is comprised of the
same individuals who served previously as directors of Grand Casinos, Inc.
Opened on June 3, 1994, Grand Casino Avoyelles is located on Highway 1 in
Marksville, Louisiana. Grand Casino Avoyelles is a land-based facility with a
218-room hotel, and a 50,000-square-foot gaming floor offering approximately
1,700 slot machines, 50 table games, and an 11-table poker room. Among the
resort's other features include a 1,700-seat entertainment complex, three
restaurants plus a nightclub featuring live entertainment, a full-service RV
resort, and a Kids Quest child care activity center. Grand Casino Avoyelles is
owned by the Tunica-Biloxi Indians of Louisiana and managed by Lakes Gaming,
Inc. For more information, visit www.grandcasinos.com/avoyelles.
Grand Casino Coushatta opened on January 16, 1995. Located east of Lake Charles,
25 minutes north of I-10 on US 165, approximately five miles north of Kinder,
Louisiana, Grand Casino Coushatta is a land-based casino resort offering a
223-room hotel and over 3,000 slot machines and over 75 table games, plus a
12-table poker room, in 98,000 square feet of gaming space. Three restaurants,
plus a food court, a full-service RV resort and a Kids Quest child care activity
center are among the property's non-gaming amenities. Grand Casino Coushatta is
owned by the Coushatta Tribe of Louisiana and managed by Lakes Gaming, Inc. For
more information, visit www.grandcasinos.com/coushatta.
Lakes Gaming, Inc. is a publicly held casino management company that was formed
through a distribution to shareholders of Grand Casinos, Inc. effected in
December 1998. The company currently manages the two largest casino resorts in
Louisiana. Grand Casino Avoyelles is located in the central part of the state,
approximately 80 miles northwest of Baton Rouge. Grand Casino Coushatta is
located in southwestern Louisiana, near Interstate 10, approximately 160 miles
east of Houston. Lakes Gaming, Inc. common shares are traded on the Nasdaq-Amex
Stock Market under the trading symbol LACO.
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 the Company) contains statements that are
forward-looking, such as statements relating to plan 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, those relating to development and
construction activities, dependence on existing management, leverage and debt
service (including sensitivity to fluctuations in the interest rates), domestic
or global economic conditions, activities of competitors and the presence of new
or additional competition,
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fluctuations and changes in customer preferences and attitudes, changes in
federal or state tax laws of the administration of such laws and changes in
gaming laws or regulations (including the legalization of gaming in certain
jurisdictions). For more information, review the Company's filings with the
Securities and Exchange Commission, including the Company's annual report on
Form 10-K and certain registration statements of the Company.
Contact: Lakes Gaming, Inc., Minneapolis
Jaye Snyder 612-449-8556