Lakes Entertainment Announces Formation Of Joint Venture For Potential Maryland Project
Lakes Entertainment, Inc. (“Lakes”) (NASDAQ: LACO) announced that it
entered into a joint venture with Addy Entertainment, LLC to form Evitts
Resort, LLC (“Joint Venture”), which submitted a response...
Lakes Entertainment, Inc. (“Lakes”) (NASDAQ: LACO) announced that it entered into a joint venture with Addy Entertainment, LLC to form Evitts Resort, LLC (“Joint Venture”), which submitted a response to a request for proposal by the State of Maryland Video Lottery Facility Location Commission (“Commission”) for a video lottery operation license (“License”) in Allegany County, Maryland. The Commission will evaluate applications and award the License to operate a video lottery operation at the Rocky Gap Lodge & Golf Resort in Cumberland, Maryland (“the Resort”). The License has an initial term of 15 years and is expected to be awarded in late 2011. Contemporaneous with the execution of the joint venture agreement, Lakes entered into a Development Services and Management Agreement (the “Management Agreement”) with the Joint Venture to develop and manage the gaming facility and existing facilities at the Resort, if the Joint Venture is awarded the License. “The current facilities include a hotel, restaurants, convention center and Jack Nicklaus Signature golf course. The plan the Joint Venture submitted provides for new construction of a 50,000 square foot gaming facility which will feature approximately 850 video lottery terminals, a number of food and beverage outlets, and a retail component,” said Timothy Cope, President and Chief Financial Officer of Lakes. “We believe the operating history of our company, the proposed scope of the Resort project, and the related benefits that will be provided to the State of Maryland make our application worthy of selection,” said Lyle Berman, Chairman and Chief Executive Officer of Lakes. “We look forward to working with officials from the Commission to bring to fruition this great plan for the County and State,” added Mr. Berman. About Lakes Entertainment Lakes Entertainment, Inc. currently has development and management or financing agreements with two separate Tribes for casino operations in California, for a total of two separate casino sites. Lakes is currently managing the Red Hawk Casino for the Shingle Springs Band of Miwok Indians. Lakes has an investment in Rock Ohio Ventures, LLC for their planned casino developments in Cincinnati and Cleveland, Ohio. Lakes is also involved in other business activities, including the licensing of table games to Tribal and non-Tribal casinos.