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                        [LAKES GAMING, INC. LETTERHEAD]


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FOR FURTHER INFORMATION CONTACT:
Jaye Snyder  612-449-8556
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FOR IMMEDIATE RELEASE:
MONDAY, MARCH 15, 1999

                  LAKES GAMING, INC. ANNOUNCES APPELLATE COURT
                   AFFIRMANCE OF DERIVATIVE LAWSUIT DISMISSAL


MINNEAPOLIS, MARCH 15, 1999 - LAKES GAMING, INC. (NASDAQ "LACO") today announced
that the Minnesota Court of Appeals has affirmed a lower court's dismissal of a
shareholder derivative lawsuit previously brought against certain former
officers and directors of Grand Casinos, Inc.

The lawsuit, originally filed in February 1997, alleged breach of fiduciary
duties by certain former officers and directors of Grand Casinos in connection
with Grand Casinos' involvement in Stratosphere Corporation. The Grand Casinos
Board of Directors appointed an independent special litigation committee, which
evaluated the claims and recommended in December 1997 that such claims not be
pursued. In May 1998, the trial court dismissed the lawsuit, and the Minnesota
Court of Appeals has now affirmed that dismissal.

Under the terms of the agreement governing the spin-off of Lakes from Grand
Casinos in December 1998, Lakes agreed to assume all litigation liabilities
associated with Grand Casinos' former investment in Stratosphere Corporation,
and to indemnify Grand Casinos, and its former officers and directors against
claims arising from the Stratosphere litigation.

Commenting on the dismissal, Lyle Berman, chairman of the board and chief
executive officer of Lakes, and former chairman of the board of Grand Casinos,
said, "Both Lakes and Grand Casinos have indicated their commitment to defend
Grand Casinos and its former officers and directors vigorously in connection
with the Stratosphere litigation. We have continually stated that the lawsuits
are without merit and we are naturally pleased with the court's decision."

The plaintiffs have until April 8, 1999, to seek further review of the ruling by
the Minnesota Supreme Court.

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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 Stock
Market under the trading symbol "LACO."

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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, domestic or global
economic conditions, activities of competitors and the presence of new or
additional competition, 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.
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