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Courts upholds Shingle Springs EIR

MINNEAPOLIS, Minnesota -- (PRESS RELEASE) -- Lakes Entertainment, Inc. (NASDAQ: LACO - News) today announced that on Tuesday, March 25, 2008, the California Third District Court of Appeal in Sacramento rejected the challenge of Voices for Rural Living in two appeals claiming deficiencies in the environmental impact report ("EIR") prepared for the U.S. Highway 50 interchange. The court upheld the EIR in all respects, rejecting all of the arguments advanced by Voices for Rural Living. The interchange will serve the Shingle Springs Rancheria on which the Shingle Springs Band of Miwok Indians' casino is currently being constructed.

"Although the decision has no direct impact on the construction of the interchange or casino, we are pleased that the Court chose to end the litigation that has languished for over five years," said Tim Cope, President of Lakes. "We are happy that the Shingle Springs Tribe can finally put this matter behind them."

Lakes has an agreement with the Shingle Springs Tribe which has been approved by the National Indian Gaming Commission to develop and manage the casino. The casino, which is scheduled to open in the fourth quarter of this year, will feature approximately 2,100 electronic gaming devices, 75 table games, a high stakes gaming room, as well as restaurants, enclosed parking and other facilities.

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