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Lakes Entertainment Receives Notice for Late Filing

MINNEAPOLIS, Minnesota -- (PRESS RELEASE) -- Lakes Entertainment, Inc. (Nasdaq:LACO). Lakes Entertainment, Inc. announced today that on April 20, 2005, it received a Nasdaq Staff Determination letter indicating that the Company is not compliant with Nasdaq listing standards because, as previously announced, Lakes did not timely file its Form 10-K for the year ended January 2, 2005. That filing was due on April 4, 2005. As a result, Lakes' securities are subject to delisting from the Nasdaq National Market. The delisting notification is standard procedure when a Nasdaq listed company fails to complete a required filing in a timely manner. The delisting will be stayed pending a hearing to be requested by Lakes as described below, and Lakes' securities will continue to be listed until Nasdaq notifies Lakes of its decision.

The delay in filing the Form 10-K is in response to comments Lakes has received from the SEC staff on Lakes' Form 10-K for the year ended December 28, 2003, related to a review of Lakes' financial statements. The SEC staff has questioned Lakes' accounting for development costs and advances related to Indian casinos. Lakes continues its ongoing discussions with the SEC staff about the comments. However, the comments have not yet been resolved, resulting in the delay. The SEC comments do not affect Lakes' cash position, its business model or the potential of its various casino projects.

As a result of the failure to file the Form 10-K when due, Lakes is not in compliance with the continued listing standard set forth in Nasdaq Marketplace Rule No. 4310(c)(14). As a result, the fifth character "E" will be appended to the trading symbol for the Company's securities, effective at the opening of trading on April 22, 2005. The Company intends to request a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination and request continued listing on the Nasdaq National Market. There can be no assurance that the Panel will grant the Company's request for continued listing.

Lakes Entertainment, Inc. currently has development and management agreements with six separate Tribes for new casino operations in Michigan, California, Texas and Oklahoma, a total of nine separate casino sites.

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