Summary of LAKES ENTERTAINMENT INC

Item 1.01. Entry into a Material Definitive Agreement.
On October 29, 2009, Lakes entered into an agreement with Penn Ventures, LLC ("Penn Ventures") whereby it (1) agreed to fund 10% of Penn Ventures' costs of the referendum in November 2009 to amend the Ohio constitution to authorize casino gaming in Ohio ("Referendum"), and (2) has the option, but not the obligation, to fund up to 10% of equity required to develop potential casinos in Columbus and Toledo, in return for a corresponding equity stake up to 10% in such casinos. Lakes has made an initial payment of $1.9 million. If Lakes chooses not to fund any additional amount, it will receive an equity position in the casinos in a pro rata amount of what its $1.9 million payment is to the total amount funded by Penn Ventures for the Referendum and for the equity required to develop the casinos.
On October 29, 2009, Lakes entered into an agreement with Rock Ohio Ventures, LLC ("Rock Ventures") whereby it has the right, but not the obligation, to invest up to 10% of Rock Ventures' costs of the Referendum and the equity required to develop potential casinos in Cleveland and Cincinnati in return for a corresponding equity stake up to 10% in such casinos. Lakes has made an initial investment of approximately $2.4 million. If Lakes chooses not to fund any additional amount, it will maintain an equity position in the casinos in a pro rata amount of what its approximately $2.4 million payment is to the total amount funded by Rock Ventures for the Referendum and for the equity required to develop the casinos.
A copy of these agreements is attached as Exhibit 10.1 and 10.2 to this Current Report on Form 8-K.

Item 9.01. Financial Statements and Exhibits.
(a) Not Applicable

(b) Not Applicable

(d) Exhibit

10.1 Funding Agreement by and between Lakes Entertainment, Inc. and Penn Ventures, LLC dated October 28, 2009, effective October 29, 2009.

10.2 Operating Agreement of Rock Ohio Ventures, LLC by and between Rock Ohio Ventures I, LLC, Rock Ohio Ventures II, LLC and Lakes Ohio Development dated as of October 29, 2009.