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International Guild of Hospitality & Restaurant Managers
130 Cheshire Lane, Suite 101
Minnetonka, MN 55305
Phone: (952) 449-9092
Fax: (952) 449-9353
Employees (last reported count): 30
Lakes Entertainment, Inc. (Lakes), formerly Lakes Gaming,
Inc., operates the Indian casino management business and holds various other
assets previously owned by Grand Casinos. Lakes' main business is the
development, construction and management of casinos and related hotel and
entertainment facilities in emerging and established gaming jurisdictions.
During 2001, Lakes managed the largest casino resort in Louisiana and has
entered into development and management agreements with four separate tribes for
four new casino operations: one in Michigan, two in California and one with the
Nipmuc Nation on the east coast. The Company also has agreements for the
development of a casino on Indian owned land in California through a joint
venture.
Lakes' historical revenues have been derived almost exclusively from management
fees. During 2001, Lakes managed a land-based, Indian-owned casino, Grand Casino
Coushatta, in Kinder, Louisiana (Grand Casino Coushatta). Pursuant to the
Coushatta management contract, Lakes received a fee based on the net
distributable profits generated by Grand Casino Coushatta. The management
contract expired January 16, 2002, and will not be renewed. This non-renewal
will result in the loss of revenues to the Company derived from such contract.
The Company also managed a second land-based, Indian-owned casino in Marksville,
Louisiana (Grand Casino Avoyelles). On March 31, 2000, the Company reached an
agreement with the tribe for the early buyout of the management contract for
Grand Casino Avoyelles, which was scheduled to expire on June 3, 2001. The early
buyout of the contract was provided for in the original seven-year management
agreement and, under the agreement, Lakes was compensated for the management
fees the Company would have received had it managed Grand Casino Avoyelles
through the original contract expiration date of June 3, 2001.
Partnership to Develop and Manage Casino Near San Diego, California
On May 12, 1999, the Company announced that it would form a partnership for the
purpose of developing a gaming facility on Indian-owned land near San Diego,
California. Under the agreement, Lakes has formed a limited liability company
with Kean Argovitz Resorts, LLC (KAR), a limited liability company based in
Houston, Texas. The partnership between Lakes and KAR holds a contract to
develop and manage a casino resort facility with the Jamul Indian Village in
California. The contract is subject to approval by NIGC. In 2000, California
voters approved an amendment to the State Constitution, which allows for
Nevada-style gaming on Indian land and ratifies the Tribal Compact. Development
of the casino resort will begin once various regulatory approvals are received.
Development and Management of Michigan Casino
On June 22, 1999, the Company announced that it has been selected by the Pokagon
Band of Potawatomi Indians (the Band) to serve as the exclusive developer and
manager of a proposed casino gaming resort facility to be owned by the Band in
the state of Michigan. In connection with its selection, Lakes and the Band have
executed a development and management agreement governing their relationship
during the development, construction and management of the casino. The United
States Department of the Interior issued a Finding of No Significant Impact (FONSI)
in January 2001, and filed a legal notice of its intent to place into trust 675
acres near New Buffalo, Michigan on behalf of the Pokagon Band. Under Federal
law, a 30-day waiting period was required for public comments to be made before
the land in trust process could be finalized. During the 30-day period, a
lawsuit was filed against the federal government in the District Court in the
District of Columbia by a Michigan-based group called "Taxpayers of Michigan
Against Casinos", to stop the U.S. Department of Interior from placing into
trust the land for the casino site. The Department of Justice is defending the
suit on behalf of the Secretary of Interior.
Partnership to Develop and Manage Casino Near Sacramento, California
On July 15, 1999, the Company announced that it would form a partnership for the
purpose of developing a gaming facility on Indian-owned land near Sacramento,
California. Pursuant to the agreement, Lakes has formed a limited liability
company with KAR, a limited liability company based in Houston, Texas. The
partnership between Lakes and KAR has been awarded a contract to develop and
manage a casino resort facility with the Shingle Springs Band of Miwok Indians
in California. The contract is subject to approval by NIGC and placement of the
land where the gaming facility is to be located into trust with the Bureau of
Indian Affairs (BIA). In 2000, California voters approved an amendment to the
State Constitution, which allows for Nevada-style gaming on Indian land and
ratifies the Tribal Compact. Development of the casino resort will begin once
various regulatory approvals are received.
Joint Venture for Further California Casinos, Including Financing of Cloverdale,
California Casino
On August 10, 2000, the Company announced that it had agreed to form a joint
venture for the purpose of developing gaming facilities on Indian owned land in
California. Under the agreement, Lakes formed a joint venture limited liability
company with MRD Gaming, a limited liability company. The partnership between
Lakes and MRD holds the contract to finance casino facilities with the
Cloverdale Rancheria of Pomo Indians. The planned site for the potential new
casino development is located on Highway 101 in Cloverdale, California,
approximately 60 miles north of San Francisco. Development will start as soon as
various regulatory approvals are obtained. Development is also subject to
completion of definitive financing arrangements. The joint venture also entered
into a contract relating to the Paskenta Band of Nomlaki Indians. However, in
February 2001, Lakes announced its intention to discontinue its involvement with
the Paskenta project.
Agreement for Possible Casino Development with Massachusetts Tribe
On July 9, 2001, the Company announced that it had signed development and
management agreements with the Nipmuc Nation of Massachusetts for a potential
future casino resort in the eastern United States. The Nipmuc Nation's petition
for federal recognition received a proposed positive finding from the Bureau of
Indian Affairs (BIA) in January 2001. However, in September 2001, that proposed
positive finding was reversed by the BIA when it issued a negative finding
relating to the Nipmuc Nation's request for federal recognition. The Nipmuc
Nation has 180 days from the date of the negative finding to submit additional
information for reconsideration. In addition, community groups will have an
opportunity to submit comments and documentation. The tribe has indicated that
it will submit additional information for reconsideration. If approval is
received, the Nipmuc Nation would need to put land in trust and come to a gaming
agreement with the state where the land is located before proceeding with any
such enterprise.
Disclaimer:
The data included within the Financial section is solely for information
and does not construe a recommendation and/or endorsement by IGHRM or its
members to invest funds with any of the companies listed. You are strongly
advised
to obtain professional advice with qualified individuals or corporations for any
investments of funds.
© 1999-2001 International Guild of Hospitality and Restaurant Managers
Inc. All rights reserved.
ighrm@hospitalityguild.com