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, June 11, 2004
LAKES ENTERTAINMENT, INC. ANNOUNCES CASINO PROJECT UPDATES
MINNEAPOLIS, JUNE 11, 2004 -- LAKES ENTERTAINMENT, INC. (NASDAQ "LACO") today
announced that steady progress has been made with its new casino projects during
the past 18 to 24 months. New gaming developments require considerable levels of
government and other regulatory approvals. In addition, proposed casinos usually
face legal challenges from activist groups or other opposition, which need to be
resolved before these projects can begin construction and operation. The Company
has the following casino projects under contract, each in various stages of this
process. Although the final resolution of these issues has been slower than
originally anticipated, Lakes and their Tribal partners continue to proceed with
design, development and architectural plans so that construction can begin as
soon as possible after final approvals are received.
POKAGON/MICHIGAN: The Company's project with the Pokagon Band of Potawatomi
Indians in southwestern Michigan has made significant progress in removing the
last roadblock to begin construction. Although a Michigan group (TOMAC) filed a
lawsuit against the Bureau of Indian Affairs (BIA) to block the project, a
number of favorable rulings have since been received. In March 2002, a United
States District Court Judge dismissed the majority of claims in the lawsuit. The
remaining claim relates to secondary impacts on the surrounding communities.
Additional information supporting the BIA's position has been submitted to the
Court for requested final approval. The Department of Justice (DOJ) is now
expected to file its response to the reply from TOMAC by June 18, 2004. There
can be no assurance that the DOJ response will be filed by this date. Once the
DOJ response is submitted, the case will be fully briefed and the Court will
take the additional information under consideration. While no assurances can be
given, the Company believes this issue can be resolved in time to allow
construction to start as soon as Fourth Quarter 2004, subject to adequate
financing and other factors. However, construction could be further delayed
pending the court's schedule or if an unfavorable court decision is received.
The Company believes the casino can open for business approximately twelve
months after the casino construction begins.
SHINGLE SPRINGS/CALIFORNIA: The Company's project with the Shingle Springs Band
of Miwok Indians is approximately 35 miles from Sacramento, California, and
includes a newly planned interchange on Highway 50 to help the Band achieve
economic diversification and unrestricted access to their land. In December
2002, the California Transportation Commission approved the proposed
interchange, and an agreement with the Department of the Interior has been
reached to allow construction of the project to begin once all other issues are
resolved. There are two pending lawsuits that have been filed against the
project. The first is a federal lawsuit filed by El Dorado County (the county in
which the reservation is located) challenging the validity of the Environmental
Assessment prepared under National Environmental Protection Agency "NEPA" by the
National Indian Gaming Commission "NIGC" as required for the approval of the
management contract, and as required by the BIA for construction of the road.
The federal lawsuit also challenges the validity of the Tribe and whether or not
the Rancheria qualifies as Indian Lands which would allow gaming. Decisions have
been reached on the issues of verifying the validity of the Band and its
Rancheria in favor of the Band. On May 27th the Tribe and Justice Department
submitted the administrative record to the Court, per an order from that Court,
and the judge has set a trial date of August 23, 2004 to hear arguments on the
remaining issues.
The second lawsuit was filed in state court and challenges the validity of the
environmental documents prepared for the approval of the interchange by Caltrans
under the California Environmental Quality Act. This case received an initial
ruling in late December which denied all claims of the plaintiffs with the
exception of one. The judge asked for clarification of an air quality issue,
which has now been provided. The hearing on this issue was held on May 21, 2004.
The timing of a ruling is anticipated to be within 30 days of that date, per the
judge's comments. The Company is moving forward to complete the remaining
approval steps during 2004. Assuming that the various litigation issues are
favorably resolved in a timely manner, construction of the interchange and
casino could begin as soon as the first quarter of 2005, subject to adequate
financing and other factors. There can be no assurance that the various
litigation issues will be favorably resolved. The Company believes the casino
can open for business approximately fourteen months after the intersection
construction begins. The recent successful opening of the Thunder Valley Casino
has shown that there is a substantial gaming market in the Sacramento area with
approximately 8 million people within 100 miles of the casino site.
JAMUL INDIAN VILLAGE/CALIFORNIA: The Company's project with the Jamul Indian
Village in San Diego County continues to move forward with the land in trust
application process, and an Environmental Impact Statement has been prepared and
submitted to the BIA for approval. If approved, the casino would be located on
tribal land adjacent to State Highway 94, approximately 15 miles east of San
Diego. The fee to trust application is planned to be submitted to the Washington
D.C. office of the BIA by July 1, 2004. The BIA review process is expected to
take approximately 6 months after which the intent to take land into trust can
be published in the Federal Register. Once the land is placed into trust, the
development, financing and construction process can be completed. Based on these
assumptions, it is possible that the casino can be open for business as soon as
early 2007. The proposed casino will be situated in a proven gaming market
consisting of over 2 million people within 25 miles of the casino site.
NIPMUC NATION/EAST COAST: The Company has a development and management agreement
with the Nipmuc Nation of Massachusetts. The Nipmuc Nation is currently
challenging a negative finding by the U.S. Department of the Interior regarding
its status as a federally recognized tribe. The BIA is reviewing the Nation's
petition, and has notified the Nation that the projected date of the BIA's final
determination will be no later than June 15, 2004. If final approval is
received, the Nipmuc Nation will pursue putting land in trust, and entering into
an agreement for a Class III gaming project with the state where the land is
located. Gaming sites include potential locations within the states of
Massachusetts, Connecticut, Rhode Island and New Hampshire. Once the Nation is
federally recognized, it also has the option of conducting Class II gaming.
There can be no assurance that the Nation will receive federal recognition.
Lyle Berman, Chairman of the Board and CEO stated, "The Company's primary near
term goal is to open and manage several large, full-function, profitable
casinos. The regulatory approval process is time consuming and at times can be
frustrating, however, the long regulatory approval process also serves as a
significant barrier to entry for competitors." Berman continued, "As the
Company's casino development projects come to fruition and move into the
construction and management phase, they will represent very significant sources
of long-term shareholder value."
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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 plans 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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