EXHIBIT 99.1


[LAKES ENTERTAINMENT, INC. LETTERHEAD]


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FOR FURTHER INFORMATION CONTACT:
Timothy J. Cope 952-449-7030
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FOR IMMEDIATE RELEASE:
Friday, August 2, 2002


                LAKES ENTERTAINMENT, INC. ANNOUNCES JOINT VENTURE
                               TIME-SHARE PROJECT



MINNEAPOLIS, MN AUGUST 2, 2002 - Lakes Entertainment, Inc. (Nasdaq:LACO) today
announced that it has formed a joint venture with Diamond Resorts, LLC, a Nevada
limited liability company and experienced time-share developer. The purpose of
this joint venture is to develop the Shark Club parcel in Las Vegas, Nevada as
an upscale time-share project. The Shark Club property, which is currently owned
by Lakes, is an approximate 3.5 acre undeveloped site on the Las Vegas strip.
Construction of "the Chateau," a 33-story, four-tower, 850-unit complex,
estimated at $240 million should begin sometime in 2004, with completion of the
first tower in 2005.

The terms of this joint venture agreement would require Diamond to perform
sales, marketing and administrative services including services as the manager.
Lakes would be required to contribute the relevant portion of the Shark Club
parcel, valued at $16 million, after Diamond has obtained a financing commitment
for a construction loan sufficient to fund at least the first phase of the
building improvements contemplated by the time-share project. The terms of the
agreement provide for the repayment to Lakes of its contribution of property in
cash based on the joint venture's cash flow and time-share unit sales. Diamond
and Lakes will also each be required to make an initial working capital
contribution of $250,000. It is contemplated that Lakes will be required to make
no other material contributions of cash or property to the project.

Lyle Berman, Chairman, CEO and President of Lakes stated, "We are very excited
to be working together with Diamond Resorts to develop our Shark Club property
into an upscale time-share project. We feel this is an excellent site for this
type of development and we are looking forward to getting the project underway."
Mr. Berman also stated, "With a book value of over $16 per share we continue to
look for ways to enhance shareholder value."







Lakes Entertainment, Inc. currently has development and management agreements
with four separate Tribes for four new casino operations, one in Michigan, two
in California and one with the Nipmuc Nation on the East Coast. Lakes
Entertainment also has agreements for the development of one additional casino
on Indian-owned land in California through a joint venture with MRD Gaming.
Additionally, the Company owns approximately 80% of World Poker Tour, LLC, a
joint venture formed to film and produce poker tournaments for television
broadcast.

Lakes Entertainment, Inc. common shares are traded on the Nasdaq National 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 Lakes Entertainment, Inc.) 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, possible delays
in completion of Lakes' casino projects, including various regulatory approvals
and numerous other conditions which must be satisfied before completion of these
projects; possible termination or adverse modification of management contracts;
continued indemnification obligations to Grand Casinos; highly competitive
industry; possible changes in regulations; reliance on continued positive
relationships with Indian tribes and repayment of amounts owned to Lakes by
Indian tribes; possible need for future financing to meet Lakes' expansion
goals; risks of entry into new businesses; and reliance on Lakes' management.
For more information, review the Company's filings with the Securities and
Exchange Commission.
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