EXHIBIT 99.1

                     [LAKES ENTERTAINMENT, INC. LETTERHEAD]

- --------------------------------------------------------------------------------
FOR FURTHER INFORMATION CONTACT:
Timothy J. Cope 952-449-7030
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE:


                   LAKES ENTERTAINMENT, INC. ANNOUNCES RECEIPT
        OF NASDAQ STAFF DETERMINATION LETTER; INTENDS TO REQUEST HEARING
                       BEFORE LISTING QUALIFICATIONS PANEL


MINNEAPOLIS, MN AUGUST 22, 2002 - Lakes Entertainment, Inc. (Nasdaq:LACO)
announced today that on August 21, 2002, Lakes Entertainment, Inc. received a
Nasdaq Staff Determination letter indicating that the Company does not comply
with the continued listing standard set forth in Nasdaq Marketplace Rule No.
4310(c)(14), which requires companies to file all reports under the Securities
Exchange Act of 1934 on a timely basis. As a result, Lakes' securities are
subject to delisting from the Nasdaq National Market and the fifth character "E"
has been appended to the trading symbol for the Company's securities. The
delisting will be stayed pending a hearing to be requested by the Company as
described below.

Lakes previously announced on August 8, 2002 that it had engaged Deloitte &
Touche, LLP to re-audit the Company's 2001 financial statements in anticipation
of restating its financial statements for the year ended December 30, 2001. Due
to the time involved in conducting the re-audit, the Company was not able to
file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2002 on a
timely basis.

The Company intends to request a hearing before a Nasdaq Listing Qualifications
Panel to review the Staff Determination request continued listing on the Nasdaq
National Market. There can be no assurance that the Panel will grant the
Company's request for continued listing.

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



                                      -4-


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 "LACOE".


- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------


                                       XXX