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<SEC-DOCUMENT>0000950123-09-043637.txt : 20091223
<SEC-HEADER>0000950123-09-043637.hdr.sgml : 20091223
<ACCEPTANCE-DATETIME>20090916172635
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-09-043637
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090916

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
<TEXT>
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<HEAD>
<TITLE>corresp</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;LAKES ENTERTAINMENT LETTERHEAD&#093;</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Timothy J. Cope<BR>
President, Chief Financial Officer<BR>
and Treasurer<BR>
Telephone: (952)&nbsp;449-9092<BR>
Facsimile: (952)&nbsp;449-7068
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">September&nbsp;16, 2009
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Song Brandon, Esq.<BR>
Special Counsel<BR>
Officer of Mergers &#038; Acquisitions<BR>
United States Securities and Exchange Commission<BR>
100 F Street N.E.<BR>
Washington, D.C. 20549

</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="3%" nowrap align="left">RE:&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Lakes Entertainment, Inc.<BR>
Schedule&nbsp;TO-I<BR>
Filed August&nbsp;25, 2009<BR>
File No.&nbsp;5-54993</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Ms.&nbsp;Brandon:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are writing in response to the comments we received from you by letter dated September&nbsp;8,
2009, regarding the above-referenced filings of Lakes Entertainment, Inc. (the &#147;Company,&#148; &#147;we&#148; or
&#147;Lakes&#148;). For ease of reference in this letter, your comments appear in italics directly above the
Company&#146;s responses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we are simultaneously filing Amendment No.&nbsp;1 to the Schedule&nbsp;TO (&#147;Amendment No.
1&#148;) in response to the Comment Letter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Schedule&nbsp;TO-I</B></U><BR>
<U><B>Exhibit (a)(1)(i): Offering Memorandum</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>General</B></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="3%" nowrap align="left"><I>1.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note that your offer is scheduled to expire on September&nbsp;22, 2009 at 5:00 p.m., Central
Daylight Time. Because the offer materials were not filed until August&nbsp;25, 2009 and because
of the Labor Day Holiday on September&nbsp;7, 2009, your offer must remain open until midnight on
September&nbsp;22, 2009 in order to satisfy the technical requirement of Rule&nbsp;13e-</I><I>4(f)(1)(i)</I><I>. See
Rule&nbsp;13e-</I><I>4(a)(3)</I><I> (defining &#147;business day&#148; as the time period</I></TD>
</TR>

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



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Song Brandon<BR>
September&nbsp;16, 2009<BR>
Page 2

</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>between 12:01&nbsp;a.m. and 12:00 midnight on any day other than a weekend or federal holiday).
Please revise to extend the offer period to ensure that your offer is open at least twenty
full business days.</I></TD>
</TR>

</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company notes your comment and in accordance with your discussion with our counsel, we
will amend and supplement Schedule&nbsp;TO-I to extend the offer period to 11:00&nbsp;p.m. Central Daylight
Time on September&nbsp;22, 2009 as part of Amendment No.&nbsp;1 to Schedule&nbsp;TO. All of Lakes&#146;s eligible
option holders are current employees or directors and there are a relatively small number (43). As
a result, Lakes intends to distribute any revised and supplemental offer materials by email to
expedite dissemination of information.
</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="3%" nowrap align="left"><I>2.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>As currently structured, the expiration time for the offer is 5:00 pm Central Daylight Time
on Tuesday, September&nbsp;22, 2009. Determination of the new exercise price and number of new
options, however, will be determined based on the closing price of the company&#146;s common stock
on the expiration date of the offer. Thus, it appears that option holders will not have
knowledge of certain material terms of the offer (i.e. the exact exchange ratio) until 5:00 pm
Central Daylight Time on the expiration date of the offer. In that regard, it does not appear
that this structure is consistent with Item&nbsp;4 of Schedule&nbsp;TO and corresponding </I><I>Item 1004(a)</I><I> of
Regulation&nbsp;M-A. Please revise your offer or advise</I>.</TD>
</TR>

</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company will revise the Offer to provide that the expiration time will be 11:00&nbsp;p.m.
Central Daylight Time. Accordingly, the applicable exchange ratios will be known at the market
closing at 3:00 p.m. Central Daylight Time, approximately 8 hours  before the expiration of
the Tender Offer on the expiration date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligible option holders will have until 11:00&nbsp;p.m. Central Daylight Time on the expiration
date to make their final election to participate in or withdraw from the Tender Offer based on
those final ratios.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, soon after the closing of the market on the expiration
date of the tender offer, the Company will send an e-mail to each of the 43 eligible option holders
advising them of the final exchange ratio applicable to each eligible option, as well as the
exercise price of the new options to be granted in exchange for tendered eligible options. This
correspondence will be substantially prepared in advance so that it can be completed and delivered
(substantially in the form attached as Exhibit (a)(1)(xiv) to the amended Schedule&nbsp;TO)
expeditiously soon after the closing of the market on the expiration date. Each eligible option
holder has access to e-mail in the course of their employment or work for the Company and may
direct questions regarding the Tender Offer to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes it is important that the new options be granted on the expiration date of
the Tender Offer in order to be compliant and consistent with the terms of the 2007 Stock
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Song Brandon<BR>
September&nbsp;16, 2009<BR>
Page 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Option and Compensation Plan. Such plan uses a definition in which the &#147;fair market value&#148; (which
must be the exercise price) is based on the closing stock price on the date of grant. Further, the
Tender Offer materials as filed and amended advised eligible employees that the exercise price of
the new stock options would be the closing price of the Company&#146;s common stock on the date of
expiration of the Tender Offer. Accordingly, establishing the exchange ratio and exercise price on
one day but granting new options on a subsequent weekday (such as the following Monday) would be
inconsistent with these expectations. Similarly, establishing the exchange ratio and the exercise
price of the new options on a subsequent weekend date would be inconsistent with these overlapping
commitments.
</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="3%" nowrap align="left"><I>3.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Please note our comment above. In revising your offer, please provide an analysis of how
your revised offer will allow sufficient time for holders to consider whether to tender or
withdraw following the announcement of the material terms of the offer (i.e. the exact
exchange ratio). Rules l3e-</I><I>4(f)(l)(ii)</I><I> and 14e-l(b) of the Exchange Act require that you
extend the offering period for any increase or decrease in the consideration offered so at
least ten business days remain in the offer after the information is first sent to
optionholders. If you do not intend to revise the offer in compliance with the time frame set
forth in Rule&nbsp;13e-</I><I>4(f)(l)(ii)</I><I>, then provide us with a legal analysis explaining how your
revised offer complies with Rules&nbsp;13e-</I><I>4(f)(l)(ii)</I><I> and 14e-l(b). Please cite to relevant
no-action letters and/or other staff interpretive positions that you believe support your
analysis.</I></TD>
</TR>

</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We respectfully submit that the determination of the exchange ratios will not constitute a
change in the consideration offered in the Tender Offer. The Tender Offer as initially filed
provided potential exchange ratios based on the hypothetical closing price of the Company&#146;s stock
on the exchange date and provided a formula to calculate exchange ratios. The amended Tender Offer
provides that the final exchange ratios will be established shortly after the market close at 3:00
p.m. Central Daylight Time on the expiration date, approximately 8 hours before the expiration of
the Tender Offer at 11:00&nbsp;p.m. Central Daylight Time on that date. Accordingly, the only
information needed to determine the final exchange ratios will be the exchange date closing stock
price, which will be known several hours prior to the expiration of the Tender Offer. We note that
optionees were also provided with a calculation tool (Exhibit (a)(1)(xi) to the Schedule&nbsp;TO), so
that they could analyze various closing prices and the resulting exchange ratios.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In a number of non-compensatory tender offers the Staff has provided no action relief where a
final exchange ratio applicable in the offer was not published until the expiration date of the
offer. See. e. g., <I>Halliburton Company </I>(avail. Mar. 23, 2008); <I>Weyerhaeuser Company </I>(avail. Feb.
23, 2007); and <I>McDonald&#146;s Corporation </I>(avail. Sept. 27, 2006). In each of these
examples the final exchange ratio was published by 4:30 p.m. Eastern Time on the expiration date of
the offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the compensatory context, the Staff has provided relief in situations where the
consideration payable to those electing to tender was not precisely determined until after the
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Song Brandon<BR>
September&nbsp;16, 2009<BR>
Page 4

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">expiration of the offer. See, e.g., <I>Comcast Corporation </I>(avail. Oct. 7, 2004); and <I>Microsoft
Corporation </I>(avail. Oct. 13, 2003). In these instances, due to the pricing mechanisms, cash
payable for tendered options was not known until many days after the &#147;election period&#148; had ended
and the optionees&#146; withdrawal rights had terminated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further, there have been recent compensatory tender offers that involved situations in which
the exchange ratio was not known until shortly before the expiration of the offer. See, e.g., the
Schedules TO filed by each of Sirona Dental Systems, Inc. on March&nbsp;2, 2009, Lattice Semiconductor
Corporation on December&nbsp;22, 2008, and EnerNOC, Inc. on December&nbsp;19, 2008. Several other recent
compensatory tender offers have involved situations where, in the spirit of <I>Comcast </I>and <I>Microsoft</I>,
the exchange ratio and exercise price of new options was not determined until <I>after </I>the expiration
of the offer. See, e.g., the Schedule&nbsp;TO filed by Ixia on July&nbsp;8, 2008 (new option grant at
exercise price determined <I>two days after </I>expiration using exchange ratios determined <I>one day after</I>
expiration), Credence Systems Corporation on June&nbsp;27, 2008 (exchange ratio and exercise price to be
determined <I>promptly after </I>expiration date), and Sypris Solutions, Inc. on March&nbsp;31, 2008 (number of
shares subject to the new option calculated on the new grant date, which occurs <I>promptly following</I>
the expiration date).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also note that a significant delay between the determination of the applicable exchange
ratio and exercise price and the actual grant of the new options could have other negative impacts.
The option &#147;backdating&#148; problems that gained prominence in recent years involved situations in
which the exercise price was determined but the grant of options did not occur until a later date,
when the fair market value of the shares underlying the options had increased. In this regard,
many companies (including Lakes) have option plans requiring grants to be made at no less than fair
market value on the grant date. Moreover, a grant at a discount can subject an optionee to
significant tax exposure under Section&nbsp;409A of the Internal Revenue Code. We are aware that the
Staff has reviewed numerous compensatory tender offers in the last few years in which companies
were attempting to &#147;reprice&#148; upward discounted options and thus mitigate employees&#146; tax problems
under Section&nbsp;409A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally, it is also important to note that, similar to the Company&#146;s Tender Offer, many tender
offers are structured so as to provide a &#147;value for value&#148; exchange that ensures that the
compensatory (Black Scholes) value of the new options is close to that of the options being
tendered. Institutional shareholders generally require this (along with other items) in order to
support an option exchange program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that these are all considerable reasons why compensatory option exchange tender
offers are often structured to establish the exchange ratio and price the new options very close in
time to the expiration of the offer, rather than some number of days before its expiration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Withdrawal Rights, page 21 </B></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="3%" nowrap align="left"><I>4.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Rule&nbsp;13e-</I><I>4(f)(2)(ii)</I><I> requires that option holders have a right to withdraw tendered shares
after the expiration of forty business days from the commencement of the tender offer if not
yet accepted for payment. Your disclosure in this section does not address this requirement.
Please revise accordingly.</I></TD>
</TR>

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



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Song Brandon<BR>
September&nbsp;16, 2009<BR>
Page 5

</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, the Company has revised the disclosure on page 21 of
Exhibit (a)(1)(i) to Schedule&nbsp;TO to add the following:
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;In accordance with Rule&nbsp;13e-4(f)(2)(ii) of the Exchange Act, if we have not
completed the option exchange prior to the 40th business day following the
commencement of the exchange offer, you may thereafter withdraw tendered options at
any time prior to the expiration date of the offer by completing a Notice of
Withdrawal and returning it prior to the expiration date of the offer.&#148;</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Conditions of this Offer, page 22</B></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="3%" nowrap align="left"><I>5.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>A tender offer may only be subject to conditions that are drafted with sufficient specificity
to allow for objective verification that the conditions have been satisfied. In this regard,
amend your conditions to avoid the term &#147;threatened,&#148; as it is unclear how a &#147;threatened&#148;
event can be objectively determined. Similarly, please revise to clarify what you mean by the
term &#147;otherwise&#148; where you refer to &#147;condition (financial or otherwise)&#148; in this section.</I></TD>
</TR>

</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We had used the words &#147;threatened&#148; and &#147;otherwise&#148; in Section&nbsp;7 of Schedule&nbsp;TO to broadly
encompass actions which may have impacted our ability to proceed with the Tender Offer. Given the
Staff&#146;s comment, we will amend Schedule&nbsp;TO to narrow these instances by deleting the terms
&#147;threatened&#148; in Section&nbsp;7 (a)&nbsp;and (b)&nbsp;and &#147;otherwise&#148; in Section&nbsp;7(b)(iv).
</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="3%" nowrap align="left"><I>6.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Please refer to the last paragraph of this section relating to your failure to exercise any
of the rights described in this section. Note that when a condition is triggered and you
decide to proceed with the offer anyway, we believe that this constitutes a waiver of the
triggered condition(s). Depending on the materiality of the waived condition and the number
of days remaining in the offer, you may be required to extend the offer and recirculate new
disclosure to security holders. You may not, as this language seems to imply, simply fail to
assert a triggered offer condition and thus effectively waive it without officially doing so.
Please confirm your understanding in your response letter.</I></TD>
</TR>

</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company confirms its understanding that depending on the materiality of the waived
condition and the number of days remaining in the offer, the Company may be required to extend the
offer and recirculate new disclosures to option holders. The Company further confirms that
if it desires to waive a triggered offer condition, it must officially do so and inform the holders
of Eligible Options accordingly.
</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="3%" nowrap align="left"><I>7.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Please see our comment above. When an offer condition is triggered by events that occur
during the offer period and before the expiration of the offer, the company should inform</I></TD>
</TR>

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

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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Song Brandon<BR>
September&nbsp;16, 2009<BR>
Page 6

</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>holders of Eligible Options how it intends to proceed promptly, rather than wait until the
end of the offer period, unless the condition is one where satisfaction of the condition may
be determined only upon expiration. Please confirm your understanding in your response
letter.</I></TD>
</TR>

</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company confirms that if an offer condition is triggered by events that occur during (and
not as a result of expiration of) the Offer period, then it will promptly notify option holders as
to how and whether it intends to proceed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Information Concerning Lakes Entertainment, Inc., page 25</B></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="3%" nowrap align="left"><I>8.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>The summarized financial information presented in accordance with </I><I>Item 1010(c)</I><I> of Regulation
M-A is required for all of the periods specified in Item&nbsp;</I><I>1010(a)</I><I>. It does not appear you have
presented all of the information required by Item l-02(bb)(1) of Regulation&nbsp;S-X for all of the
applicable periods. Please revise your disclosure accordingly. In addition, please present
the book value per share information as required by Item l0l</I><I>0(c)(5)</I><I> as well the ratio of
earnings to fixed charges, computed in a manner consistent with </I><I>Item 503(d)</I><I> of Regulation&nbsp;S-K
as required by Item&nbsp;</I><I>1010(c)(4)</I><I>. For additional guidance, please review interpretation I.H.7
in the July&nbsp;2001 Interim Supplement to the Manual of Publicly Available Telephone
Interpretations available on our website, </I><U><I>www.sec.gov.</I></U></TD>
</TR>

</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, the Company will amend the Schedule&nbsp;TO to provide the
required summarized financial information in accordance with Item 1010(a) of Regulation&nbsp;M-A, the
information required by Item&nbsp;1-02(bb)(1) of Regulation&nbsp;S-X for all applicable periods, the book
value per share information in accordance with Item&nbsp;1010(c)(5) and the ratio of earnings to fixed
charges in accordance with item 1010(c)(4) of Regulation&nbsp;M-A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Miscellaneous, page 30</B></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="3%" nowrap align="left"><I>9.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Statements made in connection with tender offers are specifically excluded from the safe
harbor protections of the Private Securities Litigation Reform Act of 1995. See Section
2lE(b)(2)(C) of the Securities Exchange Act of 1934 and Regulation&nbsp;M-A telephone
interpretation M.2 available at www.sec.gov in the July&nbsp;2001 Supplement to the Division of
Corporation Finance&#146;s Manual of Publicly Available Telephone Interpretations. Please revise
the offer materials to clarify that the safe harbor is not available in the context of a
tender offer.</I></TD>
</TR>

</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In response to the Staff&#146;s comment, the Company will amend the Schedule&nbsp;TO to eliminate the
references to the Private Securities Litigation Reform Act of 1995.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Song Brandon<BR>
September&nbsp;16, 2009<BR>
Page 7

</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="3%" nowrap align="left"><I>10.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note your disclosure that the Offer &#147;will not be made to, nor will elections to exchange
Eligible Options be accepted from or on behalf of, the option holders residing in a
jurisdiction&#148; where you cannot comply with applicable law of that jurisdiction. Please note
that the all-holders provision in Exchange Act Rule&nbsp;13e-</I><I>4(f)(8)</I><I> applies equally to U.S.
holders as well as non-U.S. holders. Refer to the interpretive guidance in section II.G.1, of
SEC Release 33-8957. If you are relying on the global exemptive order applicable to employee
stock option exchanges to exclude from participation in the Offer some employees located
outside the United States, please be advised that exemptive relief is premised on the
compensatory reasons for the exclusion of such employees. Accordingly, please explain the
reasons for any exclusions of participants residing outside of the U.S. or advise as to how
the company is complying with the all-holders provision in Rule&nbsp;13e-</I><I>4(f)(8)</I><I>.</I></TD>
</TR>

</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company respectfully advises the Staff that, because it has no option holders located
outside of the U.S., it is referring to a U.S. state and not a non-U.S. jurisdiction in its
disclosure. The Company will amend the Schedule&nbsp;TO to modify the following sentence to provide
more clarity on this point:
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;We are not aware of any U.S. state where the making of this Offer is not in
compliance with applicable law. If we become aware of any U.S. state where the
making of this Offer is not in compliance with any valid applicable law, we will
make a good faith effort to comply with that law. If, after a good faith effort, we
cannot comply with an applicable law, this Offer will not be made to, nor will
elections to exchange Eligible Options be accepted from or on behalf of, the option
holders residing in a U.S. state where that law is applicable.&#148;</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">* * *
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby acknowledges that:
</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>the Company is responsible for the adequacy and accuracy of the disclosure in the
filings;</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>Staff comments or changes to disclosure in response to Staff comments do not
foreclose the Commission from taking any action with respect to the filings; and</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 Company may not assert staff comments as a defense in any proceeding initiated
by the Commission or any person under the federal securities laws of the United States.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hope that our letter has addressed each of the Staff&#146;s comments. If you have any questions
regarding our responses, please contact Timothy J. Cope at (952)&nbsp;449-9092.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Song Brandon<BR>
September&nbsp;16, 2009<BR>
Page 8

</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>

    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">Very truly yours,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Timothy J. Cope
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">Timothy J. Cope&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">President, Chief Financial Officer and Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<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="3%" nowrap align="left">cc:&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Daniel Tenenbaum, Esq.<BR>
Jeffery C. Anderson, Esq.</TD>
</TR>

</TABLE>
</DIV>


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



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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>






<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Amendment No.&nbsp;1 to</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 0pt"><B>SCHEDULE TO</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 0pt"><B>(Rule&nbsp;13e-4)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Tender Offer Statement Under Section&nbsp;14(d)(1) or 13(e)(1)<BR>
of the Securities Exchange Act of 1934<BR>
(Amendment No.&nbsp;1)</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Lakes Entertainment, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>(Name of Subject Company (issuer))</B></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Lakes Entertainment, Inc.<BR>
(Name of Filing Person (Offeror))</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Options to Purchase Common Stock, Par Value $0.01 Per Share, of Lakes Entertainment, Inc.<BR>
(Title of Class of Securities)</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>51206P109<BR>
(CUSIP Number of Class of Securities)</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Timothy J. Cope<BR>
President, Chief Financial Officer and Treasurer<BR>
Lakes Entertainment, Inc.<BR>
130 Cheshire Lane, Suite&nbsp;101<BR>
Minnetonka, Minnesota 55305<BR>
(952)&nbsp;449- 9092<BR>
(Name, Address and Telephone Number of Person Authorized to Receive Notices<BR>
and Communications on Behalf of Filing Person)</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Copy to:</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Daniel R. Tenenbaum, Esq.<BR>
Jeffrey C. Anderson, Esq.<BR>
Gray, Plant, Mooty, Mooty &#038; Bennett, P.A.<BR>
500 IDS Center<BR>
80 South Eighth Street<BR>
Minneapolis, Minnesota 55402<BR>
612-632-3000</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">CALCULATION OF FILING FEE</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="79%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
              <TD style="border-top: 2px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">TRANSACTION VALUATION*</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD colspan="3" align="center" style="border-top: 2px solid #000000">AMOUNT OF FILING FEE</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"><B>$3,723,457</B></DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000"><B>$</B></TD>
    <TD align="right" style="border-top: 2px solid #000000"><B>207.77</B></TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="8" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 3pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Calculated solely for the purpose of determining the amount of the
filing fee. This amount assumes that options to purchase 2,384,800
shares of common stock, par value $0.01 per share, of Lakes
Entertainment, Inc. having an aggregate value of $3,723,457 will be
surrendered and/or cancelled pursuant to this offer. The aggregate
value of the options was calculated based on the Black-Scholes option
pricing model. The amount of the filing fee, calculated in accordance
with Rule&nbsp;0-11 of the Securities Exchange Act of 1934, as amended,
equals .00005580 times the transaction valuation or $55.80 per
$1,000,000 of the transaction value.</TD>
</TR>

</TABLE>



<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="3%" nowrap align="left"><FONT face="Wingdings">&#254;</FONT> &nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Check the box if any
part of the fee is
offset as provided by
Rule&nbsp;0-11(a)(2) and
identify the filing with
which the offsetting fee
was previously paid.
Identify the previous
filing by registration
statement number, or the
Form or Schedule and the
date of its filing.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="96%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Amount Previously Paid:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">$207.77</TD>
    <TD align="right" valign="top"></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form or Registration No.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="left" valign="top">Schedule&nbsp;TO-I
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Filing Party:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="left" valign="top">Lakes Entertainment, Inc.
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date Filed:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="LEFT" valign="top">August&nbsp;25, 2009
</TD>
</TR>
<!-- End Table Body -->
</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="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Check the appropriate boxes below to designate any transactions to which the statement
relates:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;third-party tender offer subject to Rule&nbsp;14d-1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><FONT face="Wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issuer tender offer subject to Rule&nbsp;13e-4.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;going-private transaction subject to Rule&nbsp;13e-3.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amendment to Schedule&nbsp;13D under Rule&nbsp;13d-2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the following box if the filing is a final amendment reporting the results of the tender
offer:&nbsp;<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





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

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










<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">ITEM 12. EXHIBITS.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">ITEM 12. EXHIBITS.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">INDEX TO EXHIBITS</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>







<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Amendment No.&nbsp;1 to Schedule&nbsp;TO</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Amendment No.&nbsp;1 (&#147;<B>Amendment No.&nbsp;1</B>&#148;) amends and supplements the Tender Offer Statement on
Schedule&nbsp;TO (&#147;<B>Schedule&nbsp;TO</B>&#148;) filed with the Securities and Exchange Commission on August&nbsp;25, 2009,
related to an offer by Lakes Entertainment, Inc. (&#147;<B>Lakes</B>&#148; or the &#147;<B>Company</B>&#148;) to exchange certain
options to purchase shares of the Company&#146;s common stock upon the terms and subject to the
conditions set forth in the Offering Memorandum, dated August&nbsp;25, 2009, and in the related Cover
Letter, copies of which are attached as Exhibit (a)(1)(i) and (a)(1)(ii).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Extension of Offer
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Offering Memorandum is hereby amended as discussed in Exhibit (a)(1)(xii) (&#147;Amendment to
Offering Memorandum Certain Outstanding Options to Purchase Common Stock for New Stock Option
Grants&#148;). <B>Throughout the Schedule&nbsp;TO and the Exhibits, all references to the expiration date of the
Offering Memorandum, which was originally May&nbsp;22, 2009 at 5:00 p.m., Central Daylight Time, are
amended to extend the expiration date of the Offering Memorandum until May&nbsp;22, 2009 at 11:00&nbsp;p.m.,
Central Daylight Time.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The information in the Schedule&nbsp;TO, including all schedules and annexes thereto, which was
previously filed with the Schedule&nbsp;TO, is hereby expressly incorporated by reference into this
Amendment No.&nbsp;1, except that such information is hereby amended and supplemented to the extent
specifically provided herein.
</DIV>

<!-- link2 "ITEM 12. EXHIBITS." -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 12. EXHIBITS.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Exhibit (a)(1)(i), Section&nbsp;4. Withdrawal Rights.</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Exhibit (a)(1)(i), Section&nbsp;4 is hereby amended and supplemented by adding the following to the end
of the third paragraph on page 21 thereof:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In accordance with Rule&nbsp;13e-4(f)(2)(ii) of the Exchange Act, if we have not completed the
option exchange prior to the 40th day following the commencement of the exchange offer, you
may thereafter withdraw tendered options at any time prior to the expiration date of the
offer by completing a Notice of Withdrawal and returning it prior to the expiration date of
the offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit (a)(1)(i), Section&nbsp;7. Conditions of this Offer.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Exhibit (a)(1)(i), Section&nbsp;7 paragraphs (a)&nbsp;and (b)&nbsp;are hereby amended and restated in their
entirety as follows:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(a)&nbsp;there shall have been instituted or be pending any action or proceeding by any
government or governmental, regulatory or administrative agency, authority or tribunal or
any other person, before any court, authority, agency or tribunal that directly or
indirectly challenges the making of this Offer, the acceptance for exchange or cancellation
of some or all of the Eligible Options tendered for exchange pursuant to this Offer or the
issuance of Replacement Options;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(b)&nbsp;there shall have been any action, pending or taken, or approval withheld, or any
statute rule, regulation, judgment, order or injunction proposed, sought, promulgated,
enacted, entered, amended, enforced or deemed to be applicable to this Offer or any Eligible
Options tendered for exchange, or to us, by any court or any authority, agency or tribunal
that in our reasonable judgment would or might directly or indirectly:
</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">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make the acceptance for exchange of, or issuance of Replacement Options
for, some or all of the Eligible Options tendered for exchange illegal or otherwise
restrict or prohibit consummation of this Offer;</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">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>delay or restrict our ability, or render us unable, to accept for exchange,
cancel or issue Replacement Option for some or all of the Eligible Options tendered
for exchange;</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">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>materially impair (such as by increasing the accounting or other costs of
this Offer to us) the contemplated benefits of this Offer to us; or</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">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>materially and adversely affect the business, &#091;financial&#093; condition, income
or operations of Lakes;</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit (a)(1)(i), Section&nbsp;9. Information Concerning Lakes Entertainment, Inc.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Exhibit (a)1)(i), Section&nbsp;9 of the Schedule&nbsp;TO, under the caption &#147;Certain Financial Information&#148;
is hereby amended and supplemented by adding the following:
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

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



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>As of</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>As of</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>As of</I></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">December 28, 2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">December 30, 2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">June 28, 2009</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">(in thousands)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance Sheet</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">69,392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,629</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Noncurrent assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,484</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186,709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,794</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">165,444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">256,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">172,423</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40,141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,466</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">40,051</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Noncurrent liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,253</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,927</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,978</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minority interest in
discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">207,298</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122,445</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities and
stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">165,444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">256,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">172,423</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Book Value Per Share</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our book value per share as of June&nbsp;28, 2009 was $4.65.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Ratio of Earnings to Fixed Charges</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth our ratio of earnings to fixed charges for the periods
specified:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Year Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Year Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Six Months Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Six Months Ended</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">December 28, 2008</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">December 30, 2007</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">June 28, 2009</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">June 29, 2008</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of Earnings
to Fixed Charges
(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Our earnings were insufficient to cover our fixed charges by $68.9&nbsp;million for the year ended
December&nbsp;28, 2008, $5.3&nbsp;million for the year ended December&nbsp;30, 2007, and $6.9&nbsp;million for the six
months ended June&nbsp;29, 2008.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit (a)(1)(i), Section&nbsp;17. Miscellaneous.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Exhibit (a)(1)(i), Section&nbsp;17 is hereby amended and supplemented as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>The first paragraph of Section&nbsp;17. Miscellaneous is hereby amended and restated in its entirety as
follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">This offering memorandum and our SEC reports referred to herein include forward-looking
statements. You can identify these statements by the fact that they do not relate strictly
to historical or current facts. They contain words such as &#147;anticipate,&#148; &#147;estimate,&#148;
&#147;expect,&#148; &#147;project,&#148; &#147;intend,&#148; &#147;plan,&#148; &#147;believe,&#148; &#147;may,&#148; &#147;can,&#148; &#147;could,&#148; &#147;might,&#148; &#147;should&#148;
and other words or phrases of similar meaning. Certain information included in this Offer
and other materials filed or to be filed by Lakes with the United States Securities and
Exchange Commission (&#147;SEC&#148;) as well as information included in oral statements or other
written statements made or to be made by Lakes contain statements that are forward-looking,
such as plans for future expansion and other business development activities as well as other statements
regarding capital spending, financing sources and the effects of regulation (including
gaming and tax regulation) and
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">competition. Such forward looking information involves
important risks and uncertainties that could significantly affect the anticipated results in
the future and, accordingly, actual results may differ materially from those expressed in
any forward-looking statements made by or on behalf of Lakes.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Th third paragraph of Section&nbsp;17. Miscellaneous is hereby amended and restated in its entirety as
follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">We are not aware of any U.S. state where the making of this Offer is not in compliance with
applicable law. If we become aware of any U.S. state where the making of this Offer is not in
compliance with any valid applicable law, we will make a good faith effort to comply with that
law. If, after a good faith effort, we cannot comply with an applicable law, this Offer will not
be made to, nor will elections to exchange Eligible Options be accepted from or on behalf of,
the option holders residing in a U.S. state where that law is applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit (a)(1)(ii), Cover Letter to Eligible Employees and Directors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Exhibit (a)(1)(ii), Cover Letter to Eligible Employees and Directors is hereby amended and
supplemented as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>The paragraph titled &#147;Expiration&#148; is here amended and restated in its entirety as follows:</I>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Offer will expire at 11:00&nbsp;p.m. CDT on Tuesday, September&nbsp;22, 2009 (the &#147;Expiration
Date&#148;), unless this expiration date is extended.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Item&nbsp;12 of the Schedule&nbsp;TO is hereby amended and supplemented by adding the following exhibits:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)(1)(xii) Amendment to Offering Memorandum relating to our Offering Memorandum Certain
Outstanding Options to Purchase Common Stock for Replacement Options to Purchase Common Stock
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)(1)(xiii) Form of E-mail Announcing Extension of Offering Memorandum
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)(1)(xiv) Form of Reminder E-mail to Eligible Option Holders
</DIV>

<!-- link2 "ITEM 12. EXHIBITS." -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ITEM 12. EXHIBITS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Item&nbsp;12 of the Schedule&nbsp;TO is hereby amended and supplemented to add the following amended
exhibits:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)(1)(xii) Amendment to Offering Memorandum relating to our Offering Memorandum Certain
Outstanding Options to Purchase Common Stock for Replacement Options to Purchase Common Stock
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)(1)(xiii) Form of E-mail announcing Extension of Offer to Exchange
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)(1)(xiv) Form of Reminder E-mail to Eligible Option Holders
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After due inquiry and to the best of my knowledge and belief, I certify that the information
set forth in this Amendment No.&nbsp;1 to the Schedule&nbsp;TO is true, complete and correct.
</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">Date: September 16, 2009&nbsp;</TD>
    <TD colspan="3" align="left">Lakes Entertainment, Inc.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Timothy J. Cope
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Timothy J. Cope&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">President, Chief Financial Officer and Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

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

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


<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>

</TABLE>
<!-- link1 "INDEX TO EXHIBITS" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">INDEX TO EXHIBITS
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(i)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Offering Memorandum relating to our Offering Memorandum Certain Outstanding Options to Purchase Common Stock
for Replacement Options to Purchase Common Stock, dated August&nbsp;25, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(ii)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cover Letter.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(iii)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Announcement Communication to Eligible Persons, to be delivered on or about August&nbsp;25, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(iv)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Election Form.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(v)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Withdrawal Form.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(vi)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Communication to Eligible Persons Participating in the Offer Confirming Receipt of the Election Form.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(vii)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Communication to Eligible Persons Confirming Receipt of the Notice of Withdrawal.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(viii)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Communication to Eligible Persons Rejecting the Election Form.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(ix)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Communication to Eligible Persons Rejecting the Notice of Withdrawal.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(x)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reminder Communication to Eligible Persons.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(xi)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Computational Tool.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(xii)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment to Offering Memorandum relating to our Offering Memorandum Certain Outstanding Options to Purchase
Common Stock for Replacement Options to Purchase Common Stock</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(xiii)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of E-mail announcing Extension of Offer to Exchange</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(a)(1)(xiv)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Reminder E-mail to Eligible Option Holders</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(d)(i)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2007 Stock Option and Compensation Plan filed as Appendix&nbsp;D to the Company&#146;s Definitive Proxy Statement on
Form&nbsp;Def 14A filed on June&nbsp;24, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(d)(ii)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Stock Option Agreement for Replacement Options Granted to Employees Under the Lakes Entertainment,
Inc. 2007 Stock Option Plan.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(d)(iii)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Stock Option Agreement for Replacement Options Granted to Directors Under the Lakes Entertainment,
Inc. 2007 Stock Option Plan.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Previously Filed</TD>
</TR>

</TABLE>




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



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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit (a)(1)(xii)</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LAKES ENTERTAINMENT, INC.<BR>
AMENDMENT TO<BR>
OFFERING MEMORANDUM CERTAIN OUTSTANDING OPTIONS<BR>
TO PURCHASE COMMON STOCK FOR NEW STOCK OPTION GRANTS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>THE OFFER AND WITHDRAWAL RIGHTS EXPIRE ON SEPTEMBER 22, 2009 AT 11:00&nbsp;P.M.,<BR>
CENTRAL DAYLIGHT TIME, UNLESS THE OFFER IS EXTENDED</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>The Date of this Amendment to the Offering Memorandum is September&nbsp;16, 2009</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lakes Entertainment, Inc. hereby amends the Offering Memorandum relating to our Offering
Memorandum Certain Outstanding Options to Purchase Common Stock for Replacement Options to Purchase
Common Stock dated August&nbsp;25, 2009 (the &#147;<B>Offer</B>&#148;) as set forth herein. All capitalized terms not
otherwise defined herein have the meanings defined in the Offering Memorandum. Except as amended,
all terms of the Offering Memorandum and all other disclosures set forth in the Offering Memorandum
remain unchanged.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All references to the expiration date of the offer, which was originally on September&nbsp;22, 2009
at 5:00 p.m., Central Daylight Time, are hereby amended to extend the expiration date of the offer
until September&nbsp;22, 2009 at 11:00&nbsp;p.m., Central Daylight Time. Until that time, if you have
previously elected to accept the offer with respect to your eligible old options, you may withdraw
that election with respect to all of these options. If you have previously elected to accept the
Offer with respect to your eligible options for exchange and still wish to tender them, no
additional action is necessary at this time.
</DIV>



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

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit (a)(1)(xiii)</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORM OF E-MAIL ANNOUNCING EXTENSION OF OFFERING MEMORANDUM</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Lakes Employee and Directors:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;25, 2009, we announced that we are offering to exchange certain options held by
eligible employees and directors for new options pursuant to terms and for the reasons described in
the Offering Memorandum Certain Outstanding Options to Purchase Common Stock for Replacement
Options to Purchase Common Stock (the &#147;<B>Offer to Exchange</B>&#148;). Each eligible individual who holds
eligible options was provided with our Election Form.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with our filing of the Offer to Exchange with the Securities and Exchange
Commission, we have prepared an Amendment to the Offer to Exchange, dated September&nbsp;16, 2009 (the
&#147;Amendment to the Offer to Exchange&#148;), which extends the expiration date of the Offer to Exchange
to September&nbsp;22, 2009 at 11:00&nbsp;p.m., Central Daylight Time and modifies certain other language
contained in our disclosures. The Amendment to the Offer to Exchange along with Amendment No.&nbsp;1 to
our Tender Offer Statement on Schedule&nbsp;TO are attached to this e-mail.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We presently do not intend to further extend the offer. No elections will be accepted after
the offer expires.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This notice does not constitute the offer. The full terms of the offer are described in the
Offer to Exchange, dated August&nbsp;25, 2009, as amended by the Amendment to the Offer to Exchange. If
you need another copy of the Offer to Exchange or the Amendment to the Offer to Exchange, you may
request one by sending an e-mail to <U>optionexchange@Lakesentertainment.com</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As more fully described in the Offer to Exchange, as amended, to accept the offer, you must
submit a completed Election Form by regular mail or hand delivery, by facsimile at 952-449-7068,
attention Damon Schramm, or by e-mail (via PDF or similar imaged document file) to
<U>optionexchange@Lakesentertainment.com</U>. Your completed Election Form, and any subsequent
change thereto, must be submitted by September&nbsp;22, 2009 at 11:00&nbsp;p.m., Central Daylight Time (or a
later date if we extend the offer). You may change your elections at any time prior to the
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">expiration date. If we do not receive your Election Form by 11:00&nbsp;p.m., Central Daylight Time, on
the expiration date, you will be deemed to have rejected the offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All communications made after 5:00 p.m. Central Daylight Time on September&nbsp;22, 2009 must be
made by facsimile or e-mail. Communications to Lakes must be made by facsimile at 952-449-7068,
attention Damon Schramm, or by e-mail (via PDF or similar imaged document file) to
<U>optionexchange@Lakesentertainment.com</U>. Communications by Lakes to you will be made to your
e-mail address we have on file, unless you have directed us to send you a facsimile or e-mail at an
alternative designated number or e-mail address.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>If you have already submitted your Election Form, then no further action is required.</B>
</DIV>


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



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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit (a)(1)(xiv)</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORM OF REMINDER E-MAIL TO ELIGIBLE OPTION HOLDERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>September&nbsp;22, 2009 &#151; Last Day (Offer Expiration Date)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Today is the last day to elect to exchange your eligible old options as part of the Lakes
Entertainment, Inc. Offer to Exchange Certain Outstanding Options to Purchase Common Stock for
Replacement Options to Purchase Common Stock (the &#147;<B>Offer</B>&#148;) The Offer will expire at 11:00&nbsp;p.m.,
Central Daylight Time, today, September&nbsp;22, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>If you would like to participate in this offer and have not previously sent in an election to
accept the Exchange Offer, you must properly complete and deliver to us an election to participate
on the Election Form before 11:00&nbsp;p.m., Central Daylight Time, today, September&nbsp;22, 2009. </B>The
Election Form can be delivered by hand delivery, by facsimile at 952-449-7068, attention Damon
Schramm, or by e-mail (via PDF or similar imaged document file) to
<U>optionexchange@Lakesentertainment.com</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Only elections that are complete and actually received by the deadline will be accepted. If
you have questions, please direct them by e-mail to </B><U>optionexchange@Lakesentertainment.com</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are sending this e-mail to you to notify you of the exact final exchange ratios and the
exercise price of new options. Below is a table that you can use to calculate the number of shares
that would be subject to each new option compared to the number of shares subject to your eligible
old options based on the final exchange ratios.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>If you have previously elected to accept the Exchange Offer and desire to withdraw that
election, you must deliver a form of withdrawal notice (in the form of Exhibit (a)(1)(ix)) prior to
11:00&nbsp;p.m. Central Daylight Time, today, September&nbsp;22, 2009.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Final Exchange Ratios Applicable to Eligible Old Options.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Utilizing the Black-Scholes value of the new options and eligible old options determined based
on a per share stock price of &#091;$&#95;&#95;&#95;&#093;, which was the closing price of our common stock on September
22, 2009, the final exchange ratios applicable to eligible options granted under the 1998 Stock
Option and Compensation Plan, the 1998 Director Stock Option Plan and the 2007 Stock Option and
Compensation Plan are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Grant</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Exercise Price of Eligible</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Exchange</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Maximum Number of Shares Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares After Application</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Remaining Life</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Grants</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Eligible Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>of Exchange Ratio</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(in years)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</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">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If application of the applicable exchange ratio to a particular new
option to be granted in exchange for an old option tendered results in
a fractional share, the number of shares underlying the new option
will be rounded down to the nearest whole share. No consideration will
be paid for such fractional shares.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Exercise Price.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The new options will be granted with an exercise price equal to &#091;$&#95;&#95;&#95;&#093;, which was the closing
price of our common stock today, September&nbsp;22, 2009.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>This notice does not constitute the Offer to Exchange. The full terms of the offer are described in
the Offering Memorandum and the related Election Form attached hereto. You may access these
documents through the U.S. Securities and Exchange Commission&#146;s website at <U>www.sec.gov</U>, on
Lakes&#146; website at </B><U><B>www.lakesentertainment.com</B></U><B>.</B>
</DIV>



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