EXHIBIT 99.2
NEWS RELEASE
[LAKES LAKES ENTERTAINMENT, INC.
ENTERTAINMENT, INC. LOGO] 130 CHESHIRE LANE
MINNETONKA, MN 55305
952-449-9092
952-449-9353 (fax)
WWW.LAKESENTERTAINMENT.COM
TRADED: NASDAQ "LACO"
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FOR FURTHER INFORMATION CONTACT:
Timothy J. Cope 952-449-7030
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FOR IMMEDIATE RELEASE:
Friday, May 16, 2003
LAKES ENTERTAINMENT, INC. ANNOUNCES RECEIPTS OF CASH
MINNEAPOLIS, MAY 16, 2003 -- LAKES ENTERTAINMENT, INC. (LAKES) (NASDAQ "LACO")
announced today the receipt of $16.6 million in cash related to the previously
announced sale of the Polo Plaza property in Las Vegas, Nevada to Metroflag
Polo, LLC. This payment represents the cash portion due at this time of the
purchase price for the property.
The Company also announced that Lakes has satisfied all known material
indemnification obligations to Grand Casinos, Inc. in connection with the 1998
merger of Grand Casinos into a subsidiary of Park Place Entertainment
Corporation. As a result, on May 8, 2003 the trust account set up as security to
support Lakes' indemnification obligations to Grand Casinos was terminated.
Prior to the termination, approximately $2.3 million was paid out of the trust
to Stratosphere in settlement of a claim in the Stratosphere bankruptcy case
involving allegedly preferential payments. Following such payment the remaining
restricted funds, of approximately $5.9 million including interest, were
released to Lakes and reclassified as unrestricted. Subsequent indemnification
obligations to Grand Casinos, if any, would be paid directly by Lakes.
Lakes also expects to receive $16.0 million related to the previously announced
intended sale of the Shark Club property in Las Vegas, Nevada. The sale is
subject to negotiation of a definitive purchase agreement and the satisfaction
of certain conditions to closing. Lakes currently anticipates that the closing
on this property will occur in the second quarter of 2003.
Lyle Berman, Chairman and CEO of Lakes stated, "Although the Shark Club sale is
not final, the increase in available cash of over $22 million plus another $16
million when the
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Shark Club sale is completed, provides Lakes additional resources to continue to
support our Native American owned casino projects. Our book value of
approximately $15.00 per share will include over $40.0 million in cash or
approximately $4.00 per share after the potential Shark Club sale. Other than
cash, our assets will be comprised mainly of notes receivable of approximately
$71.0 million and land held for development of approximately $14.0 million, each
related to our Indian gaming projects, approximately $8.0 million in investments
in unconsolidated affiliates reflecting our remaining interest in the Polo
property, approximately $5.0 for land held for sale relating to the Travelodge
parcel, deferred tax assets of approximately $11 million and a remaining net
asset balance in various other assets and liabilities of approximately $10.0
million." Berman continued. "We remain focused on obtaining regulatory and
development approvals related to these projects, and we are hopeful that
construction on one or more of the projects will begin before the end of the
year."
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,
which is currently being disputed by the Tribe. 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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