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Appeals filed for Shingle Springs decision

MINNEAPOLIS, Minnesota -- (PRESS RELEASE) -- Lakes Entertainment, Inc. (NASDAQ:LACO) announced today that on December 15, 2006, Voices for Rural Living ("VRL") filed two Notice of Appeals to the Court of Appeal for the Third Appellate District, the first one appealing Sacramento County Superior Court Judge Connelly's Judgment discharging the Peremptory Writ of Mandate in the Voices for Rural Living and Shingle Springs Neighbors for Quality Living v. California Department of Transportation, et al, case, and the second one appealing Judge Connelly's (1) Order denying appellants' Motion for Preliminary Injunction and (2) Order sustaining Respondents' Demurrers Without Leave to Amend in the Voices for Rural Living, Chrysan Dosh, et al v. California Department of Transportation, et al, case. These cases concern the California Department of Transportation's proposed interchange that will connect Highway 50 to the Shingle Springs Band of Miwok Indians Rancheria. No briefs have been filed and no hearing date has been set.

Tim Cope, President of Lakes noted, "This is just another in a long line of stall tactics engaged in by Voices for Rural Living. We are confident that the California Department of Transportation will prevail in these appeals, and we continue to actively prepare for construction of the interchange which we anticipate will commence in early 2007."

Lakes has an agreement with the Shingle Springs Tribe, which has been approved by the National Indian Gaming Commission, to develop and manage a casino and is ready to proceed with securing financing and starting construction when the permit is issued and the construction plans are finalized.

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