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<SEC-DOCUMENT>0000950137-07-001077.txt : 20070417
<SEC-HEADER>0000950137-07-001077.hdr.sgml : 20070417
<ACCEPTANCE-DATETIME>20070129161954
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950137-07-001077
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20070129

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LAKES ENTERTAINMENT INC
		CENTRAL INDEX KEY:			0001071255
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990]
		IRS NUMBER:				411913991
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		130 CHESHIERE LANE
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55305
		BUSINESS PHONE:		6124499092

	MAIL ADDRESS:	
		STREET 1:		130 CHESHIRE LANE
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55305

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LAKES GAMING INC
		DATE OF NAME CHANGE:	19980929
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">January&nbsp;29, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
100 F Street, NE<BR>
Washington, DC 20549<BR>
Attn: H. Yuna Peng, Division of Corporate Finance

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>RE:</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Lakes Entertainment, Inc.<BR>
Registration Statement on Form&nbsp;S-3<BR>
File No.&nbsp;333-129783</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ladies and Gentlemen:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are transmitting Amendment No.&nbsp;1 to our Registration Statement on Form S-3, reflecting
revisions made in response to Staff&#146;s comments in its letter dated January&nbsp;11, 2007. In response
to the Staff&#146;s comments to our Registration Statement on Form S-3 filed on January&nbsp;3, 2007, we are
providing the following supplemental information. The paragraph numbers correspond to the
paragraph numbers contained in the Staff&#146;s comment letter dated January&nbsp;11, 2007. The page
references in the responses set forth below are to the pages of Amendment No.&nbsp;1 to our Registration
Statement on Form S-3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>General</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We note that you are registering an indeterminate number of shares because the conversion
price of the preferred shares may be adjusted. Please note that Rule&nbsp;416 covers only stock
splits, stock dividends and similar transactions and does not cover the resale of an
indeterminate number of shares resulting from the floating conversion rate to which you refer.
Please see Interpretation 3S of the Securities Act portion of the March&nbsp;1999 supplement to
the manual of publicly available CF telephone interpretations for guidance. Accordingly,
please revise to register the maximum number of shares you think may be issuable pursuant to
the registration rights agreement based on a good-faith estimate, and, if the estimate turns
out to be insufficient, file a new registration statement to register the additional shares
for resale.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Response</U>: We have not modified the number of shares of common stock to be
registered. Instead, we have revised footnote 1 to the Calculation of Registration Fee
table on the cover page to clarify that the 1,625,000 shares of common stock registered
include an indeterminate number of additional shares of common stock as may be issued by
reason of any stock dividend, stock split or other similar transactions effected without
receipt of consideration that results in an increase in the number of outstanding shares of
common stock as permitted by Rule&nbsp;416. In addition, footnote 3 to the table has been
revised to clarify the following information:</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That the 1,625,000 shares of common stock registered include the number of shares of common stock issuable to the selling shareholder upon either (i)
conversion of outstanding shares of series A convertible preferred stock or (ii)
exercise of outstanding warrants.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The 1,625,000 shares of common stock registered is 130% of the shares of
common stock issuable upon the exercise of the warrants as required by the terms
of the registration rights agreement. The warrants are currently exercisable for
1,250,000 shares of common stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We believe that the 1,625,000 shares of common stock registered is a good-faith estimate
of the maximum number of shares that may be issuable pursuant to the terms of the
registration rights agreement. If the number of shares registered turns out to be
insufficient, we will file a new registration statement to register the additional shares
for resale.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please provide a clearer and more detailed discussion of the material terms of the conversion
of outstanding shares of series A convertible preferred stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Response</U>. We have added additional information regarding the material terms of the
conversion of outstanding shares of series A convertible preferred stock in the section
entitled &#147;Description of Capital Stock &#151; Series&nbsp;A Convertible Preferred Stock- Conversion
Rights&#148; beginning on page 20 of Amendment No.&nbsp;1 to our Registration Statement on Form S-3.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also received a verbal comment from Staff asking for confirmation that we had filed all
material exhibits to the Securities Purchase Agreement dated February&nbsp;15, 2006 between us and PLKS
Holdings, LLC (&#147;Securities Purchase Agreement&#148;) filed as Exhibit&nbsp;10.2 to our Current Report on Form
8-K filed on February&nbsp;22, 2006 (&#147;Form 8-K&#148;). We believe that all of the material exhibits to the
Securities Purchase Agreement have been filed with that Form 8-K as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exhibit&nbsp;A to the Securities Purchase Agreement was the Form of Certificate of
Designation. A copy of the Certificate of Designation was filed as Exhibit&nbsp;3.1 to the
Form 8-K.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exhibit&nbsp;B to the Securities Purchase Agreement was the Form of Warrant. A copy of the
Warrant was filed as Exhibit&nbsp;10.4 to the Form 8-K.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exhibit&nbsp;C to the Securities Purchase Agreement was the Form of Registration Rights
Agreement. A copy of the Registration Rights Agreement was filed as Exhibit&nbsp;10.3 to the
Form 8-K.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>None of the remaining exhibits to the Securities Purchase Agreement (Exhibit&nbsp;D &#151; Form
of Irrevocable Transfer Agent Instructions; Exhibit&nbsp;E-1 &#151; Form of Initial Closing Opinion
of Company&#146;s Counsel; Exhibit&nbsp;E-2 &#151; Form of Additional Closing Opinion of Company&#146;s
Counsel; Exhibit&nbsp;F &#151; Form of Secretary&#146;s Certificate; and Exhibit&nbsp;G &#151; Form of Officers
Certificate) were filed as an exhibit to the Form 8-K on the grounds that they were just
ministerial documents that did</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not contain substantive terms and conditions relating to the Securities Purchase Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please contact me if you have questions or if I may be of any assistance with regard to the
enclosed responses.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
<BR>
<BR>
LAKES ENTERTAINMENT, INC<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">By       /s/ Timothy J. Cope
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Timothy J. Cope&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">President and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>


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