Document:

<PAGE>

                                                                   EXHIBIT 10.65

                              CONSENT AND AGREEMENT
                                       TO
                               BUYOUT AND RELEASE
                      (ARGOVITZ - SHINGLE SPRINGS PROJECT)

     THIS CONSENT AND AGREEMENT TO BUYOUT AND RELEASE is made and entered into
this 30th day of January, 2003, by and among Jerry A. Argovitz ("Argovitz")
Lakes KARSS-Shingle Springs, L.L.C., a Delaware limited liability company (the
"Project Company"), Lakes Entertainment, Inc. f/k/a Lakes Gaming, Inc. ("Lakes
Entertainment"), and Lakes Shingle Springs, Inc. (hereinafter referred to as
"LASS" and which entity is a wholly owned subsidiary of Lakes Gaming and
Resorts, LLC which is a wholly owned subsidiary of Lakes Entertainment).

                                    RECITALS

WHEREAS, Kean Argovitz Resorts-Shingle Springs, L.L.C. ("KARSS" and a limited
liability company owned by Kevin M. Kean ("Kean") and Argovitz) previously
entered into a Development Agreement, Management Agreement and related documents
(the "Original Development Documents") with the Shingle Springs Band of Miwok
Indians (the "Tribe") related to the design, construction and management of a
new Indian gaming facility on its tribal lands (the "Project");

WHEREAS, pursuant to a letter agreement dated June 21, 1999 (the "Letter
Agreement") between KARSS and Lakes Entertainment, such parties agreed to form a
joint venture to design, construct and manage the Project and in connection
therewith executed or caused to be executed each of the documents described
below (collectively with the Letter Agreement, the "Joint Venture Documents"):

      (i)   LASS and KARSS created and are the sole members of the Project
            Company pursuant to that certain Operating Agreement dated July 29,
            1999 (the "Operating Agreement");

      (ii)  Pursuant to that certain Assignment and Assumption Agreement dated
            July 29, 1999 between LASS and the Project Company, KARSS assigned
            to the Project Company all of KARSS's right, title and interest in
            and to the Original Development Documents;

      (iii) Pursuant to that certain Assignment and Assumption Agreement and
            Consent to Assignment and Assumption dated July 29, 1999, among
            Lakes Entertainment, LASS and KARSS, Lakes Entertainment assigned to
            LASS all of Lakes Entertainment's right, title and interest in and
            to the Letter Agreement;

      (iv)  Pursuant to that certain Guaranty dated July 29, 1999 executed by
            Lakes Entertainment in favor of KARSS (the "Guaranty"), Lakes
            Entertainment

<PAGE>

            guaranteed the obligations of LASS under the Operating Agreement and
            certain other documents described with specificity therein;

      (v)   Pursuant to that certain Management Agreement dated July 29, 1999
            between LASS and the Project Company (the "LASS Management
            Agreement"), the parties agreed that LASS would provide certain
            management services on behalf of the Project Company with respect to
            the Project;

      (vi)  Pursuant to the Letter Agreement and the Operating Agreement, LASS
            has extended certain loans to the Project Company referred to as the
            "Development Loan" and "Equity Advance" which are evidenced by a
            certain Promissory Note dated July 29, 1999 made payable by the
            Project Company to LASS in (the "Project Company Note"), which Note
            is secured by that certain Security Agreement dated July 29, 1999
            executed by the Project Company in favor of LASS, pursuant to which
            the Project Company granted LASS a security interest in all of its
            assets; such Note is also sometimes referred to as the "Interim
            Promissory Note"; and

      (vii) LASS extended a $970,000 loan to KARSS the repayment of which is
            evidenced by certain Promissory Note dated July 29, 1999 made
            payable by KARSS to LASS in the original principal amount of
            $970,000 (the "KARSS Note"), which Note is secured by that certain
            Pledge Agreement dated July 29, 1999 executed by KARSS in favor of
            LASS (the "KARSS Pledge Agreement") pursuant to which KARSS granted
            LASS a security interest in all of KARSS membership interest and
            related rights in and to the Project Company; and

WHEREAS, the Original Development Documents were amended and restated pursuant
to that certain Memorandum of Agreement Regarding Gaming Development and
Management Agreement (the "Amended Management Agreement") and related documents
dated as of May 5, 2000 (as heretofore and hereafter amended, the Amended
Management Agreement and such related documents shall be collectively referred
to as the "Amended Development Documents");

WHEREAS, to achieve regulatory approvals in a timely manner for the Amended
Management Agreement and related documents and agreements, if necessary, related
to the Project from the National Indian Gaming Commission (the "NIGC") and other
applicable regulatory authorities (the "Regulatory Approvals"), KARSS and
Argovitz have agreed to enter into this Agreement;

WHEREAS, the parties hereto believes that its execution of this Agreement is in
the best interest of the Tribe to preserve and protect the Project, from which
all tribal members should benefit, and in order to move the Project forward in a
timely manner without delay, the parties hereto desire to enter into this
Agreement; and

WHEREAS, Lakes Entertainment and Lakes Resorts, to the best of their knowledge
and based upon conversations with staff of the NIGC, believe this Agreement will
be acceptable to the

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<PAGE>

NIGC and the NIGC will take no affirmative action to nullify or otherwise
disrupt this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged and to induce the Project Company, LASS, Lakes
Entertainment and KARSS to enter into the KARSS Buyout Agreement (as hereinafter
defined), the parties agree as follows:

1.    BUYOUT/RIGHT OF REPURCHASE. Pursuant to that certain Buyout and Release
Agreement dated January 30, 2003 between KARSS, the Project Company, Lakes
Entertainment and LASS (the "KARSS Buyout Agreement") and for and in
consideration of $1.00, KARSS has absolutely sold and conveyed to LASS all of
KARSS's right, title and interest in the Project Company and each of the Joint
Venture Documents (the "Transferred Rights"). The parties hereto acknowledge and
agree that if and when Argovitz has obtained all necessary Regulatory Approvals
so as to permit such party to be a member of the Project Company, then Argovitz
shall upon providing written notice thereof to LASS (each such date hereinafter
referred to as a "Regulatory Approval Notice Date") have the right for the
payment of $1.00 to repurchase the Transferred Rights in lieu of the making any
elections under Section 2 hereof and Argovitz shall be admitted to the Project
Company on substantially the same terms as are applicable to KARSS under the
Joint Venture Documents on the date hereof; provided further however, that (a)
Argovitz shall respectively only be entitled to a fifteen percent (15%)
ownership interest and related financial rights in the Project Company under the
Joint Venture Documents, (b) Argovitz shall (i) assume fifty percent (50%) of
the then outstanding obligations under the KARSS Note by executing a new
promissory note in favor of LASS, which Note shall continue to accrue interest
from the date hereof, be secured and otherwise be repayable on the same terms
and conditions currently applicable to KARSS under the terms of the KARSS Note,
the KARSS Pledge Agreement and the other applicable Joint Venture Documents,
including without limitation, that the repayment of such obligation will be
secured by a first priority security interests upon Argovitz's membership
interest and rights in the Project Company, and (ii) as a further condition
hereto, Argovitz shall assume 50% of the "KAR Note" as contemplated by Section
1(b) of the Argovitz Jamul Consent and the same shall be cross-collateralized
and repayable by the same collateral under the KARSS Pledge Agreement described
above on the same terms as are provided under Section 23 of the "Letter
Agreement" referenced in the Recitals to this Agreement, and (c) Argovitz shall
not be entitled to any share of profits or income of the Project Company
accruing from the Project or any other source prior to the applicable Regulatory
Approval Notice Date. As of September 30, 2002, fifty percent of the KARSS Note
obligation would have equaled principal of $485,000 and accrued interest of
$112,038.50.

2.    SALE OF ASSET ELECTION. If Agrovitz shall so elect in a written notice to
LASS at any time prior to exercising his rights under Section 1 hereof (such
notification date hereinafter referred to as a "Election Date"), his rights
under Section 1 hereof shall terminate and in lieu thereof LASS shall pay to
Argovitz, the "Purchase Amount" as set forth below as the sole payment for his
past interest in the Project and Project Company. The "Purchase Amount" shall be
equal to $1,000,000 for each year or portion thereof (and such annual amount
shall be prorated based on a

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365 day year in which both of the following conditions were satisfied for only
part of any calendar year) that both of the following conditions are satisfied:
(a) Class III Gaming is being conducted at the new Project and (b) during such
period either the Project Company is the manager of the Project (with LASS or
another Subsidiary of Lakes Entertainment continuing as a member of such entity)
or LASS or another Subsidiary of Lakes Entertainment is the direct manager of
the Project; provided however that (i) such amounts shall be payable only during
the initial term of the Amended Management Agreement which term may be up to
seven (7) years subject to tribal and NIGC approval and not for any renewal term
or other period thereafter, and (ii) Argovitz shall not be entitled to any
Purchase Amount for the period accruing prior to the Election Date. Subject to
the satisfaction of the foregoing conditions, each annual portion of the
Purchase Amount shall be payable on a monthly basis.

3.    SALE OF MANAGEMENT RIGHTS. If Argovitz shall not have made an election
under Section 1 above (each an "Applicable Party") and the Project Company
should sell its rights in the Amended Development Documents to any third party
(excluding an assignment to any subsidiary of Lakes Entertainment), then LASS
shall preserve the rights of the Applicable Party under this Agreement and LASS
shall cause such purchaser to assume the obligations of the Project Company and
LASS under this Agreement.

4.    CONSENT TO TRANSFER TO LASS. The parties acknowledge, agree and consent
that LASS intends to cause the Amended Development Documents to be transferred
from the Project Company to LASS and upon the effective date of such transfer,
LASS shall be deemed to be the "Project Company" for all purposes of this
Agreement and shall be deemed to have succeeded to and assumed all of the
Project Company's rights and obligations hereunder.

5.    KARSS NOTE. Argovitz acknowledges and agrees that (a) LASS has released
KARSS from its obligations under the KARSS Note and the KARSS Pledge Agreement
pursuant to the KARSS Buyout Agreement (but is not otherwise satisfying or
canceling such indebtedness, which indebtedness shall continue in full force and
effect and continue to accrue interest in accordance with its original terms),
(b) LASS shall have no further obligation to make advances to KARSS or any other
party under Section 4 of the Letter Agreement whether or not the rights set
forth in Sections 1 or 2 hereof shall be ever exercised at a future date, and
(c) as of September 30, 2002, the outstanding principal and interest balances of
the KARSS Note was $970,000 and $224,077 respectively and that no payments have
been made on such Note since September 30, 2002.

6.    RELEASE. Argovitz hereby releases the Project Company, Lakes
Entertainment, Lakes Resorts, LASS, all of their subsidiaries, and each of their
directors, officers, shareholders, employees, agents and attorneys
(collectively, the "Lakes Related Parties"), and the Lakes Related Parties
hereby release Argovitz from any claims or potential claims it or he has or may
have against each other concerning the Project, the Project Company, the Joint
Venture Documents or any of the Amended Development Documents for acts or
omissions occurring on or prior to the effective date of this Agreement, but
specifically excluding any claims arising from any misrepresentation, act or
omission or failure to perform any obligation under this Agreement and any
claims under Section 7 hereof.

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7.    INDEMNIFICATION. Argovitz agrees to indemnify and hold harmless each of
the Lakes Related Parties from any and all loss, costs and expenses (including,
without limitation, all legal fees and costs) resulting from any
misrepresentation of Argovitz under this Agreement and any claims or potential
claims from third parties (specifically including any claims by Willard Eugene
"Bud" Smith) based on any prior dealings between such third parties and Argovitz
or KARSS concerning the Project and the subject matter of the Amended
Development Documents provided that (a) without limiting the forgoing, Argovitz
acknowledges and agrees that he shall remain responsible for any such claims
arising from Willard Eugene "Bud" Smith and Argovitz's spouse, and (b) the
Project Company shall remain responsible to perform its express obligations set
forth in the Amended Development Documents. However, Argovitz shall have no
personal liability therefore (excluding claims of his spouse) and Lakes shall
seek recourse only against payments to which Argovitz (or any of his assigns)
would be entitled to under the terms of this Agreement. If Mr. Smith or anyone
else recovers any money from any of the Lakes Related Parties arising from any
claim within the scope of the foregoing indemnity, then and only then may the
Lakes Related Parties offset fifty percent (50%) of such recovery against the
amounts due Argovitz under this Agreement, provided however, that upon the
commencement of an action with respect to such claim, the Lakes Related Parties
may suspend any such payments, in a reasonable amount based upon the allegations
stated in the action, and hold the same in escrow until the claim has been
finally settled or adjudicated with interest accruing thereon at a reasonable
rate to be agreed upon by the parties and if they can't agree, the issue will be
settled by arbitration under Section 13 hereof.

Each of the Lakes Related Parties agrees to indemnify and hold harmless Argovitz
from any and all loss, costs and expenses (including, without limitation, all
legal fees and costs) resulting from any misrepresentation of any of the Lakes
Related Parties under this Agreement and any claims or potential claims from
third parties (excluding the rights and obligations set forth in the Amended
Management Agreement and any agreement expressly referred to therein) based on
any prior dealings between such third parties and any of the Lakes Related
Parties concerning the Project, The Project Company and the subject matter of
the Amended Development Documents which were not permitted dealings thereunder
or under the Joint Venture Documents.

8.    NONCOMPETE/CONFIDENTIALITY. Argovitz agrees that (a) he shall and shall
cause each of his family members and any entity in which he or any of the
foregoing persons shall directly or indirectly own equity interests together
with any officers, directors and equity owners of such entity (collectively, the
"Noncompete Parties"), to comply with each of the noncompetition and
confidentiality provisions set forth in the Amended Development Documents to the
same extent as if any of such Noncompete Parties was the Project Company
thereunder, each of which provisions are hereby incorporated by reference, and
(b) in addition to the foregoing, that he shall not and shall cause each of the
other Noncompete Parties to not directly or indirectly solicit or enter into any
consulting, brokerage, management, financing or other similar agreement with any
Indian tribe with respect to its gaming enterprise or with any party seeking
such an agreement with such an Indian tribe or other gaming enterprise, related
to a gaming enterprise located or to be located within a fifty (50) mile radius
of the Shingle Springs Tribe's gaming enterprise or the Lake Tahoe area.

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<PAGE>

9.    REPRESENTATIONS AND WARRANTIES. Argovitz hereby represents and warrants
that (a) to the best of his knowledge, KARSS has transferred to the Project
Company all rights and assets held by KARSS with respect to the Project, the
Original Development Documents and the Amended Development Documents, (b) except
for the Joint Venture Documents, the Amended Management Agreement and any
agreement expressly referred to therein and any agreements referenced on
Schedule 9(c) hereof, neither he nor to the best of his knowledge, KARSS has
entered into any agreements or understandings with any party with respect to the
Project, (c) neither he nor to the best of his knowledge, KARSS has taken any
act or failed to take any act that would cause a default or breach by the
Project Company of its obligations under the Amended Development Documents,
except those acts referenced on Schedule 9(c) hereof, (d) neither he nor to the
best of his knowledge, KARSS has directly or indirectly assigned, conveyed,
pledged or otherwise transferred to any party any interest or rights in the
Project, the Project Company or any revenues or profits to be derived therefrom
except for the KARSS Pledge Agreement, and (e) he has the full legal right and
authority to execute, deliver and perform this Agreement and the consent,
authority or signature of no other party is required in connection therewith.

10.   SETOFF/RECOUPMENT RIGHTS. The parties acknowledge and agree that each of
the Lakes Related Parties (each of which shall be an intended third party
beneficiary of this provision) shall have the right to setoff or recoup any
amount owing to it by Argovitz against any obligations owing by it to Argovitz
under this Agreement and/or any future documents and agreements relating to
Argovitz's exercise of his rights under Section 1 above or which may be entered
into amongst the parties and relating to the subject matter of this Agreement.

11.   FURTHER ASSURANCES. Each of the parties hereto agree to execute such
additional documents and agreements as are necessary to effectuate the intents
and purposes of this Agreement.

12.   GOVERNING LAW. This Agreement will be governed by and interpreted in
accordance with Delaware law.

13.   DISPUTE RESOLUTION/ARBITRATION. In connection with any dispute hereunder,
the parties agree to negotiate in good faith for up to twenty days. If they are
unable to resolve the dispute in such period, then either party may demand and
such dispute shall be submitted to and resolve by binding arbitration in
accordance with the following terms:

            (a) Governing Rules. Any arbitration proceeding will (i) proceed in
      a location in Minneapolis Minnesota selected by the American Arbitration
      Association ("AAA"); (ii) be governed by the Federal Arbitration Act
      (Title 9 of the United States Code), notwithstanding any conflicting
      choice of law provision in any of the documents between the parties; and
      (iii) be conducted by the AAA, or such other administrator as the parties
      shall mutually agree upon, in accordance with the AAA's commercial dispute
      resolution procedures. Any party who fails or refuses to submit to
      arbitration following a demand by any other party shall bear all costs and
      expenses incurred by such other party in

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      compelling arbitration of any dispute. The arbitration requirement does
      not limit the right of any party to obtain provisional or ancillary
      remedies such as replevin, injunctive relief, attachment or the
      appointment of a receiver or the exercise of any secured creditor rights
      necessary to protect any collateral granted to any of the Lakes Related
      Parties, before during or after the pendency of any arbitration
      proceeding.

            (b) Arbitrator Powers. The arbitrator will determine whether or not
      an issue is arbitratable and will give effect to the statutes of
      limitation in determining any claim. In any arbitration proceeding the
      arbitrator will decide (by documents only or with a hearing at the
      arbitrator's discretion) any pre-hearing motions which are similar to
      motions to dismiss for failure to state a claim or motions for summary
      adjudication. The arbitrator may grant any remedy or relief that a court
      of such state could order or grant within the scope hereof and such
      ancillary relief as is necessary to make effective any award. The
      arbitrator shall also have the power to award recovery of all costs and
      fees, to impose sanctions and to take such other action as the arbitrator
      deems necessary to the same extent a judge could pursuant to the Federal
      Rules of Civil Procedure, the Minnesota Rules of Civil Procedure or other
      applicable law. Judgment upon the award rendered by the arbitrator may be
      entered in any court having jurisdiction. The institution and maintenance
      of an action for judicial relief or pursuit of a provisional or ancillary
      remedy shall not constitute a waiver of the right of any party, including
      the plaintiff, to submit the controversy or claim to arbitration if any
      other party contests such action for judicial relief.

            (c) Miscellaneous. The arbitrator shall award all costs and expenses
      of the arbitration proceeding. To the maximum extent practicable, the AAA,
      the arbitrators and the parties shall take all action required to conclude
      any arbitration proceeding within 180 days of the filing of the dispute
      with the AAA. No arbitrator or other party to an arbitration proceeding
      may disclose the existence, content or results thereof, except for
      disclosures of information by a party required in the ordinary course of
      its business or by applicable law or regulation. If more than one
      agreement for arbitration by or between the parties potentially applies to
      a dispute, the arbitration provision most directly related to the
      documents between the parties or the subject matter of the dispute shall
      control. This arbitration provision shall survive termination, amendment
      or expiration of any of the documents or any relationship between the
      parties.

14.   ADVERSE NIGC ACTION. The parties acknowledge and agree that an important
purpose of this Agreement is to allow LASS and the Project Company to get
immediately licensed by the NIGC and to immediately allow the Project to move
forward. Should the NIGC take any action to nullify or otherwise disrupt this
Agreement, then the parties shall immediately meet and negotiate in good faith
to agree to such modifications as may be necessary to obtain NIGC approval
hereof while still maintaining the intents and purposes of this Agreement, with
any disputes related thereto resolved by arbitration under Section 13 above.

15.   ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective heirs, successors and assigns, except
that Argovitz may not

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assign his rights or obligations hereunder except (a) with the prior written
consent of LASS or (b) an assignment of rights, but not obligations, that is
based on a "Third Party Offer" (as such term is defined in the Operating
Agreement) and provided (i) he shall first provide to LASS a right of first
refusal to purchase such rights upon the same terms and conditions set forth in
Section 13.4 of the Operating Agreement (provided further that no such right of
first refusal shall apply after Argovitz has exercised and elected to proceed
with his buyout rights under Section 2 hereof), and (ii) the Third Party Offer
must not contain any contingencies and the prospective purchaser thereunder
shall have deposited into escrow with Argovitz at least $500,000 as a earnest
money pending the completion of the transfer, or (c) an assignment or pledge of
payment rights only to Argovitz's spouse in connection with his pending divorce
and/or his attorney Walker Beavers on the same terms and conditions applicable
to the Pledge of a membership interest as set forth in Section 13.7 of the
Operating Agreement. Any permitted assignment above shall be further conditioned
upon (I) all rights of any assignee under this Agreement and any related
documents and agreements shall be expressly subject and subordinate to the
rights and interests of each of the Lakes Related Parties hereunder and
thereunder and such assignee shall execute and deliver in favor of the Lakes
Related Parties a subordination agreement in form and substance reasonably
acceptable to the Lakes Related Parties, and (II) LASS receiving prior to the
completion of such transfer: (i) a copy of the Third Party Offer, if applicable,
and all documents and agreements relating to the transfer, (ii) a copy of the
written notice from the National Indian Gaming Commission pursuant to which it
shall either approve such transfer or acknowledge that no such approval is
necessary for the transfer; (iii) a legal opinion in form and substance
reasonably acceptable to LASS that such transfer is in compliance with all
applicable federal, state and tribal laws, rules and regulations, including
without limitation the Indian Gaming Regulatory Act, as amended (collectively,
the "Applicable Laws"), and no additional approvals or consents of any federal,
state or tribal governmental entity or third party is required with respect
thereto under any Applicable Law, the Amended Development Documents or any other
agreement between Argovitz and the Tribe or any of the Lakes Related Parties,
(iv) a written assignment and assumption agreement executed by Argovitz and the
transferee in form and substance reasonably acceptable to LASS whereby such
transferee shall receive and assume the rights and obligations of Argovitz under
this Agreement; and (v) payment of all reasonable and necessary costs and
expenses (including attorneys fees) of LASS incurred in connection with
completing such transfer.

16.   MISCELLANEOUS. Time is of the essence in the performance of this
Agreement. This Agreement, the KARSS Buyout Agreement and the Joint Venture
Documents embody the entire agreement and understanding between the parties with
respect to the subject matter hereof and thereof. This Agreement supersedes all
prior agreements and understandings relating to the subject matter hereof. This
Agreement may be executed in any number of counterparts and by facsimile, all of
which taken together shall constitute one and the same instrument, and any of
the parties hereto may execute this Agreement by signing any such counterpart,
provided that this Agreement shall not become effective until all parties have
executed the same.

         [The remainder of this page has been intentionally left blank]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and
year first above written.

   /s/ Jerry A. Argovitz
-------------------------------------
JERRY A. ARGOVITZ

LAKES KAR-SHINGLE SPRINGS, L.L.C.
By: Kean Argovitz Resorts-Shingle Springs, L.L.C.
Its: Member

         By:  /s/ Jerry A. Argovitz
         ----------------------------
         Name:  Jerry A. Argovitz
         Its: Manager and Member

         and

         By:  /s/ Kevin M. Kean
         ----------------------------
         Name:  Kevin M. Kean
         Its: Manager and Member

LAKES ENTERTAINMENT, INC.

By:  Timothy J. Cope
-------------------------------------
Timothy J, Cope
Its: Chief Financial Officer

LAKES SHINGLE SPRINGS, INC.

By:  Timothy J. Cope
-------------------------------------
Timothy J. Cope
Its: Chief Financial Officer

             SIGNATURE PAGE TO CONSENT AND AGREEMENT TO BUYOUT AND
                        RELEASE-SHINGLE SPRINGS PROECT]<PAGE>

                                                                   EXHIBIT 10.66

                              CONSENT AND AGREEMENT
                                       TO
                               BUYOUT AND RELEASE
                         (KEAN- SHINGLE SPRINGS PROJECT)

      THIS CONSENT AND AGREEMENT TO BUYOUT AND RELEASE is made and entered into
this 30th day of January 2003, by and among Kevin M. Kean ("Kean"), Lakes KAR
Shingle Springs, L.L.C., a Delaware limited liability company (the "Project
Company"), Lakes Entertainment, Inc. f/k/a Lakes Gaming, Inc. ("Lakes
Entertainment"), and Lakes Shingle Springs, Inc. (hereinafter referred to as
"LASS" and which entity is a wholly owned subsidiary of Lakes Gaming and
Resorts, LLC which is a wholly owned subsidiary of Lakes Entertainment).

                                    RECITALS

WHEREAS, Kean Argovitz Resorts-Shingle Springs, L.L.C. ("KARSS" and a limited
liability company owned by Kean and Jerry A. Argovitz ("Argovitz")) previously
entered into a Development Agreement, Management Agreement and related documents
(the "Original Development Documents") with the Shingle Springs Band of Miwok
Indians (the "Tribe") related to the design, construction and management of a
new Indian gaming facility on its tribal lands (the "Project");

WHEREAS, pursuant to a letter agreement dated June 21, 1999 (the "Letter
Agreement") between KARSS and Lakes Entertainment, such parties agreed to form a
joint venture to design, construct and manage the Project and in connection
therewith executed or caused to be executed each of the documents described
below (collectively with the Letter Agreement, the "Joint Venture Documents"):

      (i)   LASS and KARSS created and are the sole members of the Project
            Company pursuant to that certain Operating Agreement dated July 29,
            1999 (the "Operating Agreement");

      (ii)  Pursuant to that certain Assignment and Assumption Agreement dated
            July 29, 1999 between LASS and the Project Company, KARSS assigned
            to the Project Company all of KARSS's right, title and interest in
            and to the Original Development Documents;

      (iii) Pursuant to that certain Assignment and Assumption Agreement and
            Consent to Assignment and Assumption dated July 29, 1999, among
            Lakes Entertainment, LASS and KARSS, Lakes Entertainment assigned to
            LASS all of Lakes Entertainment's right, title and interest in and
            to the Letter Agreement;

      (iv)  Pursuant to that certain Guaranty dated July 29, 1999 executed by
            Lakes Entertainment in favor of KARSS (the "Guaranty"), Lakes
            Entertainment

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<PAGE>

            guaranteed the obligations of LASS under the Operating Agreement and
            certain other documents described with specificity therein;

      (v)   Pursuant to that certain Management Agreement dated July 29, 1999
            between LASS and the Project Company (the "LASS Management
            Agreement"), the parties agreed that LASS would provide certain
            management services on behalf of the Project Company with respect to
            the Project;

      (vi)  Pursuant to the Letter Agreement and the Operating Agreement, LASS
            has extended certain loans to the Project Company referred to as the
            "Development Loan" and "Equity Advance" which are evidenced by a
            certain Promissory Note dated July 29, 1999 made payable by the
            Project Company to LASS in (the "Project Company Note"), which Note
            is secured by that certain Security Agreement dated July 29, 1999
            executed by the Project Company in favor of LASS, pursuant to which
            the Project Company granted LASS a security interest in all of its
            assets; such Note is also sometimes referred to as the "Interim
            Promissory Note"; and

      (vii) LASS extended a $970,000 loan to KARSS the repayment of which is
            evidenced by certain Promissory Note dated July 29, 1999 made
            payable by KARSS to LASS in the original principal amount of
            $970,000 (the "KARSS Note"), which Note is secured by that certain
            Pledge Agreement dated July 29, 1999 executed by KARSS in favor of
            LASS (the "KARSS Pledge Agreement") pursuant to which KARSS granted
            LASS a security interest in all of KARSS membership interest and
            related rights in and to the Project Company; and

WHEREAS, the Original Development Documents were amended and restated pursuant
to that certain Memorandum of Agreement Regarding Gaming Development and
Management Agreement (the "Amended Management Agreement") and related documents
dated as of May 5, 2000 (as heretofore and hereafter amended, the Amended
Management Agreement and such related documents shall be collectively referred
to as the "Amended Development Documents");

WHEREAS, to achieve regulatory approvals in a timely manner for the Amended
Management Agreement and related documents and agreements, if necessary, related
to the Project from the National Indian Gaming Commission (the "NIGC") and other
applicable regulatory authorities (the "Regulatory Approvals"), KARSS and Kean
have agreed to enter into this Agreement;

WHEREAS, Kean and Argovitz entered into a Settlement Agreement dated October 22,
2002 that resolved the disputes and litigation between them in order to minimize
the costs of litigation and the risk of economic loss to each of them
individually and to KARSS (the "Argovitz Settlement Agreement";

WHEREAS, the parties hereto believes that its execution of this Agreement is in
the best interest of the Tribe to preserve and protect the Project, from which
all tribal members should benefit, and in order to move the Project forward in a
timely manner without delay, the parties hereto

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<PAGE>

desire to enter into this Agreement; and

WHEREAS, Lakes Entertainment and Lakes Resorts, to the best of their knowledge
and based upon discussions with staff of the NIGC, believe this Agreement will
be acceptable to the NIGC and the NIGC will take no affirmative action to
nullify or otherwise disrupt this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, and to induce the Project Company, LASS, Lakes
Entertainment and KARSS to enter into the KARSS Buyout Agreement and the
Consulting Agreement (each as hereinafter defined), the parties agree as
follows:

1.    BUYOUT. Pursuant to that certain Buyout and Release Agreement dated
January 30, 2003 between KARSS, the Project Company, Lakes Entertainment and
LASS (the "KARSS Buyout Agreement") and for and in consideration of $1.00, KARSS
has absolutely sold and conveyed to LASS all of KARSS's right, title and
interest in the Project Company and each of the Joint Venture Documents (the
"Transferred Rights"). Kean, as a 50% owner and member of KARSS, hereby
acknowledges that his consent and agreement to the KARSS Buyout Agreement is
granted in consideration of the additional terms and provisions of this
Agreement, including without limitation, the loans to be provided under the Loan
and Security Agreement referenced in Section 2 hereof.

2.    LOAN AND SECURITY AGREEMENT/REPAYMENT OF SECURED OBLIGATIONS. In
connection with this Agreement, Kean, as debtor, and Lakes Entertainment, LASS,
Lakes Jamul, Inc., the Project Company, Lakes Kean Argovitz Resorts-California,
L.L.C. and Lakes California Land Development, Inc.("Lakes California"), as
secured parties, have entered into that certain Loan and Security Agreement of
even date herewith (the "Loan and Security Agreement"), pursuant to which (a)
Lakes California agreed to extend certain loans to Kean as more specifically
provided therein and such secured parties have been granted a security interest
in, among other things, Kean's rights and interests under this Agreement and the
Consulting Agreement to secure said loans as well as the Kean Residential Loan
Obligation (as defined below) and certain other obligations owed to such secured
parties, all as more specifically described therein. Kean acknowledges and
agrees that any amounts payable to him with respect to this Agreement and/or the
Consulting Agreement (each such payment herein referred to as a "Contract
Payment"), shall first be paid to each of the "Secured Parties" described in the
Loan and Security Agreement until all of the "Secured Obligations" described
therein have been indefeasibly paid in full; provided that prior to the
occurrence of an Event of Default (as such term is defined in the Loan and
Security Agreement) and provided that such payment does not represent proceeds
arising from a sale or assignment of his rights under this Agreement and/or the
Consulting Agreement, Kean shall be entitled to first receive fifty percent
(50%) of such Contract Payment and the balance remaining shall then be applied
to the Secured Obligations in such order of priority amongst such obligations as
the secured parties shall determine. As used herein, the term "Kean Residential
Loan Obligation" shall mean Kean's obligations to Lakes Entertainment now or
hereafter owing and arising from (i) Lakes Entertainment's performance of that
certain Commercial Guaranty Agreement dated November 6, 1999 to Hibernia
National Bank which Guaranty secured Kean's Promissory Note dated November 22,
1999, as amended May 15, 2000, payable to the order of Hibernia in the original
principal face amount of $1,986,995.09, and (ii) that certain related

                                       3
<PAGE>

Agreement For Indemnification dated May 16, 2000 between Kean and Lakes
Entertainment. Kean acknowledges and agrees that as of September 30, 2002, the
outstanding principal and interest balance of the Kean Residential Loan
Obligation was $1,740,106 and $97,649, respectively, and further includes in
addition thereto $25,000 in attorneys' fees due and owing to Lakes Entertainment
in connection with the litigation and June 2002 settlement related to the Kean
Residential Loan Obligation.

3.    CONSENT TO TRANSFER TO LASS. The parties acknowledge, agree and consent
that LASS intends to cause the Amended Development Documents to be transferred
from the Project Company to LASS and upon the effective date of such transfer,
LASS shall be deemed to be the "Project Company" for all purposes of this
Agreement and shall be deemed to have succeeded to and assumed all of the
Project Company's rights and obligations hereunder.

4.    KARSS NOTE. Kean acknowledges and agrees that (a) LASS has released KARSS
from its obligations under the KARSS Note and the KARSS Pledge Agreement
pursuant to the KARSS Buyout Agreement (but is not otherwise satisfying or
canceling such indebtedness, which indebtedness shall continue in full force and
effect and continue to accrue interest in accordance with its original terms),
(b) LASS shall have no further obligation to make advances to KARSS or any other
party under Section 4 of the Letter Agreement whether or not the rights set
forth in Sections 2 or 4 hereof shall be ever exercised at a future date, and
(c) as of September 30, 2002, the outstanding principal and interest balances of
the KARSS Note is $970,000 and $224,077 respectively and that no payments have
been made on such Note since September 30, 2002.

5.    RELEASE. Kean hereby releases the Project Company, Lakes Entertainment,
Lakes Resorts, LASS, all of their subsidiaries, and each of their directors,
officers, shareholders, employees, agents and attorneys (collectively, the
"Lakes Related Parties"), and the Lakes Related Parties hereby release Kean from
any claims or potential claims it or he has or may have against each other
concerning the Project, the Project Company, the Joint Venture Documents or any
of the Amended Development Documents for acts or omissions occurring on or prior
to the effective date of this Agreement, but specifically excluding any claims
arising from any misrepresentation, act or omission or failure to perform any
obligation under this Agreement or the Consulting Agreement.

6.    INDEMNIFICATION. Kean agrees to indemnify and hold harmless each of the
Lakes Related Parties from any and all loss, costs and expenses (including,
without limitation, all legal fees and costs) resulting from any
misrepresentation of Kean to any of them under this Agreement and any claims or
potential claims from third parties (and specifically including any claims of
Willard Eugene "Bud" Smith or Eugene J. Kean) based on any prior dealings
between such third parties and any of KARSS, Kean or Argovitz (collectively, the
"KARSS Related Parties") concerning the Project, the Project Company and the
subject matter of the Amended Development Documents provided that the Project
Company shall remain responsible to perform its express obligations set forth in
the Amended Development Documents. Without limiting the forgoing, Kean further
acknowledges and agrees that he shall remain responsible for any such claims
arising from Willard Eugene "Bud" Smith, Eugene J. Kean and Kean's spouse.

                                       4
<PAGE>

Each of the Lakes Related Parties agrees to indemnify and hold harmless Kean
from any and all loss, costs and expenses (including, without limitation, all
legal fees and costs) resulting from any misrepresentation of any of them under
this Agreement and any claims or potential claims from third parties (excluding
the rights and obligations set forth in the Amended Management Agreement and any
agreement expressly referred to therein) based on any prior dealings between
such third parties and any of the Lakes Related Parties concerning the Project,
the Project Company and the subject matter of the Amended Development Documents
which were not permitted dealings thereunder or under the Joint Venture
Documents.

7.    NONCOMPETE/CONFIDENTIALITY. Unless otherwise agreed to by the Tribe, Kean
agrees that (a) he shall and shall cause each entity in which he shall directly
or indirectly own any equity interests (or if such entity is a publicly traded
entity, any such entity in which he owns at least 10% of the outstanding voting
equity interests), together with any officers, directors, equity owners,
employees and agents of such entity (collectively, the "Noncompete Parties"), to
comply with each of the noncompetition and confidentiality provisions set forth
in the Amended Development Documents to the same extent as if any of such
Noncompete Parties was the Project Company thereunder, each of which provisions
are hereby incorporated by reference, and (b) in addition to the foregoing, that
he shall not and shall cause each of the other Noncompete Parties to not
directly or indirectly solicit or enter into any consulting, brokerage,
management, financing or other similar agreement with any Indian tribe with
respect to its gaming enterprise or with any party seeking such an agreement
with such an Indian tribe or other gaming enterprise, related to a gaming
enterprise located or to be located within a fifty (50) mile radius of the
Shingle Springs Tribe's gaming enterprise or the Lake Tahoe area.

8.    REPRESENTATIONS AND WARRANTIES. Kean hereby represents and warrants that
(a) KARSS has transferred to the Project Company all rights and assets held by
KARSS with respect to the Project, the Original Development Documents and the
Amended Development Documents, (b) except for the Joint Venture Documents, the
Amended Management Agreement and any agreement expressly referred to therein and
any agreements referenced on Schedule 8(c) hereof, neither he nor KARSS has
entered into any agreements or understandings with any party with respect to the
Project or the Project Company, (c) neither he nor KARSS has taken any act or
failed to take any act that would cause a default or breach by the Project
Company of its obligations under the Amended Development Documents, except those
acts referenced on Schedule 8(c) hereof, (d) neither he nor KARSS has directly
or indirectly assigned, conveyed, pledged or otherwise transferred to any party
any interest or rights in the Project, the Project Company or any revenues or
profits to be derived therefrom except for the KARSS Pledge Agreement and other
than any economic interest assigned to Kean's father, Eugene J. Kean, and (e) he
has the full legal right and authority to execute, deliver and perform this
Agreement and on behalf of KARSS, to execute, deliver and perform the KARSS
Buyout Agreement, and the consent, authority or signature of no other party
(including, without limitation, Eugene J. Kean) is required in connection
therewith.

9.    SETOFF/RECOUPMENT RIGHTS. The parties acknowledge and agree that each of
the Lakes Related Parties (each of which shall be an intended third party
beneficiary of this provision) shall have the right to setoff or recoup any
amount owing to it by Kean (including without limitation, the Secured
Obligations described in the Loan and Security Agreement) against any
obligations

                                       5
<PAGE>

owing by it to Kean under this Agreement, the Consulting Agreement and/or any
related documents and agreements.

10.   FURTHER ASSURANCES. Kean agrees to execute such additional documents and
agreements as are necessary to effectuate the intents and purposes of this
Agreement.

11.   GOVERNING LAW. This Agreement will be governed by and interpreted in
accordance with Delaware law.

12.   DISPUTE RESOLUTION/ARBITRATION. In connection with any dispute hereunder,
the parties agree to negotiate in good faith for up to twenty days. If they are
unable to resolve the dispute in such period, then either party may demand and
such dispute shall be submitted to and resolve by binding arbitration in
accordance with the following terms:

            (a) Governing Rules. Any arbitration proceeding will (i) proceed in
      a location in Minneapolis Minnesota selected by the American Arbitration
      Association ("AAA"); (ii) be governed by the Federal Arbitration Act
      (Title 9 of the United States Code), notwithstanding any conflicting
      choice of law provision in any of the documents between the parties; and
      (iii) be conducted by the AAA, or such other administrator as the parties
      shall mutually agree upon, in accordance with the AAA's commercial dispute
      resolution procedures. Any party who fails or refuses to submit to
      arbitration following a demand by any other party shall bear all costs and
      expenses incurred by such other party in compelling arbitration of any
      dispute. The arbitration requirement does not limit the right of any party
      to obtain provisional or ancillary remedies such as replevin, injunctive
      relief, attachment or the appointment of a receiver or the exercise of any
      foreclosure or self-help remedies, before during or after the pendency of
      any arbitration proceeding.

            (b) Arbitrator Powers. The arbitrator will determine whether or not
      an issue is arbitratable and will give effect to the statutes of
      limitation in determining any claim. In any arbitration proceeding the
      arbitrator will decide (by documents only or with a hearing at the
      arbitrator's discretion) any pre-hearing motions which are similar to
      motions to dismiss for failure to state a claim or motions for summary
      adjudication. The arbitrator may grant any remedy or relief that a court
      of such state could order or grant within the scope hereof and such
      ancillary relief as is necessary to make effective any award. The
      arbitrator shall also have the power to award recovery of all costs and
      fees, to impose sanctions and to take such other action as the arbitrator
      deems necessary to the same extent a judge could pursuant to the Federal
      Rules of Civil Procedure, the Minnesota Rules of Civil Procedure or other
      applicable law. Judgment upon the award rendered by the arbitrator may be
      entered in any court having jurisdiction. The institution and maintenance
      of an action for judicial relief or pursuit of a provisional or ancillary
      remedy shall not constitute a waiver of the right of any party, including
      the plaintiff, to submit the controversy or claim to arbitration if any
      other party contests such action for judicial relief.

            (c) Miscellaneous. The arbitrator shall award all costs and expenses
      of the arbitration proceeding. To the maximum extent practicable, the AAA,
      the arbitrators and

                                       6
<PAGE>

      the parties shall take all action required to conclude any arbitration
      proceeding within 180 days of the filing of the dispute with the AAA. No
      arbitrator or other party to an arbitration proceeding may disclose the
      existence, content or results thereof, except for disclosures of
      information by a party required in the ordinary course of its business or
      by applicable law or regulation. If more than one agreement for
      arbitration by or between the parties potentially applies to a dispute,
      the arbitration provision most directly related to the documents between
      the parties or the subject matter of the dispute shall control. This
      arbitration provision shall survive termination, amendment or expiration
      of any of the documents or any relationship between the parties.

13.   ADVERSE NIGC ACTION. The parties acknowledge and agree that an important
purpose of this Agreement is to allow LASS and the Project Company to get
immediate approval by the NIGC of the Amended Management Agreement and related
documents if necessary and to immediately allow the Project to move forward.
Should the NIGC take any action to nullify or otherwise disrupt this Agreement,
then the parties shall immediately meet and negotiate in good faith to agree to
such modifications as may be necessary to obtain such NIGC approval while still
maintaining the intents and purposes of this Agreement, with any disputes
related thereto resolved by arbitration under Section 12 above.

14.   ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective heirs, successors and assigns, except
that Kean may not assign his rights or obligations hereunder except with the
prior written consent of LASS in its sole discretion.

15.   MISCELLANEOUS. Time is of the essence in the performance of this
Agreement. This Agreement, the documents referred to herein, the KARSS Buyout
Agreement and the Joint Venture Documents embody the entire agreement and
understanding between the parties with respect to the subject matter hereof and
thereof. This Agreement supersedes all prior agreements and understandings
relating to the subject matter hereof. This Agreement may be executed in any
number of counterparts and by facsimile, all of which taken together shall
constitute one and the same instrument, and any of the parties hereto may
execute this Agreement by signing any such counterpart, provided that this
Agreement shall not become effective until all parties have executed the same.

         [The remainder of this page has been intentionally left blank]

                                       7
<PAGE>

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and
year first above written.

  /s/ Kevin M. Kean
-------------------------------------
KEVIN M. KEAN

LAKES KAR-SHINGLE SPRINGS, L.L.C.
By: Kean Argovitz Resorts-Shingle Springs, L.L.C.
Its: Member

         By:  /s/ Kevin M. Kean
         ----------------------------
         Name:  Kevin M. Kean
         Its: Manager and Member

LAKES ENTERTAINMENT, INC.

By:  /s/ Timothy J. Cope
-------------------------------------
Timothy J. Cope
Its: Chief Financial Officer

LAKES SHINGLE SPRINGS, INC.

By:  /s/ Timothy J. Cope
-------------------------------------
Timothy J. Cope
Its: Chief Financial Officer

             [SIGNATURE PAGE TO CONSENT AND AGREEMENT TO BUYOUT AND
                        RELEASE-SHINGLE SPRINGS PROECT]

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