MINNEAPOLIS, Jul 14, 2010 (BUSINESS WIRE) -- Lakes Entertainment, Inc. (NASDAQ: LACO) announced today that on
July 13, 2010, it entered into a Termination Agreement with Penn
Ventures, LLC, a subsidiary of Penn National Gaming, Inc. ("Penn")
whereby in exchange for a $25 million payment from Penn to Lakes, Lakes
agreed to relinquish all right, title and interest it had in the casino
projects in Columbus, Ohio and Toledo, Ohio which are proposed to be
developed by Penn. As previously announced, on October 28, 2009, Lakes
and Penn entered into a Funding and Option Agreement whereby, in return
for a corresponding equity stake up to 10% in the potential casinos in
Columbus and Toledo, Lakes (1) agreed to fund 10% of Penn's costs of the
Issue 3 referendum and (2) had the option, but not the obligation, to
fund up to 10% of equity required to develop such casinos. Lakes had
funded approximately $1.9 million under the Funding and Option
Agreement. The Termination Agreement does not affect Lakes's investment
with Rock Ohio Ventures, LLC and its proposed casino developments in
Cincinnati and Cleveland.
"Although we believe the Toledo and Columbus casinos will be very
successful, receiving $25 million now is a good return on our investment
with Penn," said Lyle Berman, Chairman and CEO of Lakes. "We have
enjoyed our relationship with Penn and wish them much success with these
casinos," added Berman.
About Lakes Entertainment
Lakes Entertainment, Inc. currently has development and management or
financing agreements with three separate Tribes for casino operations in
Michigan and California, for a total of three separate casino sites.
Lakes is currently managing the Four Winds Casino Resort for the Pokagon
Band of Potawatomi Indians and the Red Hawk Casino for the Shingle
Springs Band of Miwok Indians. Lakes is also involved in other business
activities, including the licensing of table games to Tribal and
non-Tribal casinos.
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,
need for potential future financing to meet Lakes' development needs;
those relating to the inability to complete or 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 or development contracts; Lakes operates in a
highly competitive industry; possible changes in regulations; reliance
on continued positive relationships with Indian tribes and repayment of
amounts owed 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.
SOURCE: Lakes Entertainment, Inc.
Lakes Entertainment, Inc.
Investor Relations Contact:
Timothy Cope, 952-449-7030
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