EXHIBIT 99.1
NEWS RELEASE
LAKES ENTERTAINMENT, INC.
[LAKES 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, October 24, 2003
LAKES ENTERTAINMENT, INC. NAMED
AS A DEFENDANT IN LITIGATION
MINNEAPOLIS, OCTOBER 24, 2003 -- LAKES ENTERTAINMENT, INC. (NASDAQ "LACO") today
announced that it has been named as one of a number of defendants in a
counterclaim filed in state court in Harris County, Texas by Willard Eugene
Smith involving Kean Argovitz Resorts (KAR), related persons and entities. In
the counterclaim, Smith asserts that, under an alleged oral agreement with Kevin
Kean, he is entitled to a percentage of fees to be received by the KAR entities
or principals relating to the Shingle Springs and Jamul casinos being developed
by Lakes' subsidiaries in California. Smith also seeks recovery of damages and
other relief from the KAR entities, Lakes and certain affiliates based on their
conduct with respect to the alleged agreement.
Lakes believes the counterclaim against it is without merit and understands that
the alleged agreement upon which Smith bases his claim was rendered null and
void in a prior judgment issued against Smith by the Harris County, Texas state
court in October 2000. Lakes acquired KAR's interests in the Shingle Springs and
Jamul projects on January 30, 2003. In the buyout agreements between Lakes and
certain KAR entities and related principals, the KAR entities represented to
Lakes that the KAR entities and their affiliates had no continuing agreements
with any third party relating to the Shingle Springs and Jamul projects and that
no claims or rights of any third parties existed with respect to their rights in
such projects. Lakes will vigorously defend against the allegations made against
it and will pursue its indemnification rights against the KAR entities and their
principals under the buyout agreements if necessary.
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
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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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