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Michigan Group Appeals Casino Case

MINNEAPOLIS, Minnesota -- (PRESS RELEASE) -- Lakes Entertainment, Inc. (Nasdaq:LACOE) announced today that the Taxpayers of Michigan Against Casinos ("TOMAC") has appealed a federal judge's recent decision to dismiss its lawsuit seeking to block the construction of a casino to be built by the Pokagan Band of Potawatomi Indians in New Buffalo Township, Michigan. TOMAC sued the U. S. Department of the Interior and the Bureau of Indian Affairs ("BIA") in 2001 to block the construction of the Four Winds Casino, a resort development consisting of a casino, restaurants, parking garage, hotel and special events center. Most of the suit was dismissed in March 2002, and in March 2005 U.S. District Judge James Robertson dismissed the remaining issue, ruling that the BIA's environmental assessment found that the casino would have no significant impact on the environment. The decision cleared the way for the Bureau of Indian Affairs to take land into trust for the Pokagon Band of the Potawatomi Indian tribe to build the Four Winds Casino. TOMAC's appeal was filed in response to the District Judge's ruling on the lawsuit. An agreement has been reached between the Department of Justice and TOMAC to not take the land into trust during the appeal process in exchange for TOMAC agreeing to a "fast track" hearing process. Nevertheless, the appeal could delay the land in trust decision by eight to ten months.

The Tribe indicated that they are confident that they will prevail in the appeal. "TOMAC will not win this appeal," said Pokagon Tribal Chairman John Miller. "They will lose it just like they have lost the past six rulings in the state and federal courts. Their scorched earth-style litigation will do nothing more than again delay our ability to become self-sufficient while denying 3,500 residents new jobs."

Lakes has an agreement with the Pokagon Band to develop and manage the casino and is ready to proceed with construction as soon as the land is placed into trust.

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