Document:

<PAGE>
                                                                   Exhibit 10.79

                                                               EXECUTION VERSION

             FIRST AMENDMENT TO ASSIGNMENT AND ASSUMPTION AGREEMENT

     This Agreement is made as of the 22nd day of December, 2004, by and among
Great Lakes Gaming of Michigan, LLC, a Minnesota limited liability company
("Great Lakes"), Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc., a
Minnesota corporation ("Lakes"), and the Pokagon Band of Potawatomi Indians (the
"Band").

                                   WITNESSETH:

     WHEREAS, the Band and Lakes entered into a Development Agreement dated as
of July 8, 1999 (the "1999 Development Agreement") and a Management Agreement
dated as of July 8, 1999 (the "1999 Management Agreement"; collectively, with
the 1999 Development Agreement, the "1999 Agreements"), pursuant to which the
Band engaged Lakes to, among other things, assist the Band in the design,
development, construction and management of a gambling casino and certain
related amenities (as defined in the 1999 Development Agreement, the
"Facility"); and

     WHEREAS, pursuant to the 1999 Development Agreement Lakes agreed to make
certain payments and advances to the Band, including without limitation the
Transition Loan, the Lakes Development Loan and the Non-Gaming Land Acquisition
Line of Credit (collectively the "Lakes Loans"), and the Scholarship Program
Fee, and has agreed to perform development services with regard to the Facility,
all on the terms set out in that Agreement; and

     WHEREAS, pursuant to the 1999 Management Agreement Lakes agreed to manage
the Facility on the terms set out in that Agreement; and

     WHEREAS, Lakes assigned its rights and obligations under the 1999
Agreements to Great Lakes pursuant to an Assignment and Assumption Agreement
dated as of October 16, 2000 (the "Assignment and Assumption Agreement"),
subject to the terms and conditions set out in that Agreement; and

     WHEREAS, the 1999 Agreements were amended and restated by First Amended and
Restated Development Agreement dated as of October 16, 2000 and by First Amended
and Restated Management Agreement dated as of October 16, 2000 (collectively,
the "First Amended and Restated Agreements"); and

     WHEREAS, Great Lakes, Lakes and the Band have entered into a Second Amended
and Restated Development Agreement dated as of December 22, 2004 (the "Second
Amended and Restated Development Agreement") and a Second Amended and Restated
Management Agreement dated as of December 22, 2004(the "Second Amended and
Restated Management Agreement"; collectively, the "Second Amended and Restated
Agreements"); and

     WHEREAS, the parties wish to amend the Assignment and Assumption Agreement
to reflect the execution of the Second Amended and Restated Agreements as
provided below;

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     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

1.   Recitals True. The above recitals are true.

2.   Defined Terms. Capitalized terms used but not otherwise defined herein and
     defined in the Assignment and Assumption Agreement shall have the same
     meaning herein as therein.

3.   Amendments. The Assignment and Assumption Agreement is amended as follows:

     a. Section 6 of the Assignment and Assumption Agreement is restated in its
     entirety as follows:

          Assumption of Obligations. Great Lakes accepts the assignment of
          Lakes' rights and obligations under the Obligations. Great Lakes
          assumes and agrees to perform and discharge all of the obligations and
          liabilities of Lakes arising under or relating to the Obligations in
          accordance with the terms thereof, as if Great Lakes had originally
          been a party thereto. The liabilities so assumed by Great Lakes
          include any obligations or liabilities of Lakes which have accrued
          under the Obligations as of the date hereof, as well as those
          subsequently accruing. All references to Lakes in the Obligations
          shall, except as set out in a certain Amendment of Account Control
          Agreement dated as of October 16, 2002 and as further amended by
          Second Amendment dated as of December 22, 2004, or in an Amendment to
          Pledge and Security Agreement dated as of December 16, 2002 and as
          further amended by Second Amendment dated as of December 22, 2004, be
          deemed to refer to Great Lakes; except that references in the Second
          Amended and Restated Development Agreement dated as of December 22,
          2004 (the "Second Amended and Restated Development Agreement") and the
          Second Amended and Restated Management Agreement dated as of December
          22, 2004 (the "Second Amended and Restated Management Agreement";
          collectively with the Second Amended and Restated Development
          Agreement, the "Second Amended and Restated Agreements") or in any
          related documents dated on or about December 22, 2004, to Great Lakes
          and Lakes, respectively, shall refer to the respective entity so
          named.

     b. Section 7 of the Assignment and Assumption Agreement is restated in its
     entirety as follows:

     c. Band Consent. The Band consents to this Assignment, recognizes Great
     Lakes as a substituted party under the Obligations (except to the extent
     provided in Section 15.20 of the Second Amended and Restated Development
     Agreement and Section 18.23 of the Second Amended and Restated Management
     Agreement), and agrees that Great Lakes shall be a party to such
     Obligations to the same extent as if Great Lakes had originally

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     been a party thereto; without prejudice, however, to Lakes' continued
     obligations to the Band under the Obligations as provided in the Second
     Amended and Restated Agreements, its Guaranty, the Account Control
     Agreement, as amended, the Amendment to Pledge and Security Agreement, as
     amended, and this Agreement.

     d. Section 8 of the Assignment and Assumption Agreement is restated in its
     entirety as follows:

          Release of Lakes. The Band releases and forever discharges Lakes of
          any and all liabilities or obligations under the Obligations except as
          specifically set out in Section 15.20 of the Second Amended and
          Restated Development Agreement and Section 18.23 of the Second Amended
          and Restated Management Agreement, and except as provided in such
          sections agrees to look solely to Great Lakes for performance of all
          obligations of Lakes under the Obligations; conditioned on, however,
          the execution by Lakes and LG&R of the unlimited guarantee attached
          hereto as Exhibit B (the "Guarantee"), as amended, and without
          prejudice to the Band's rights under such Guarantee, under the Second
          Amended and Restated Agreements, under the Account Control Agreement,
          as amended, the Amendment to Pledge and Security Agreement, as
          amended, or under this Agreement.

     e. Sections 10(a) and 10(c) of the Assignment and Assumption Agreement are
     deleted. Reference is made to Section 15.20 of the Second Amended and
     Restated Development Agreement and Section of the 18.23 of the Second
     Amended and Restated Management Agreement.

     f. Section 11 of the Assignment and Assumption Agreement is restated in its
     entirety as follows:

          Sovereign Immunity. Lakes agrees that all claims and causes of action
          it may in the future have against the Band, whether at law, in tort or
          otherwise, shall be subject to the Band's sovereign immunity, unless
          specifically waived by the Band in writing after the date of this
          Agreement or, as to disputes under this Agreement or under the Second
          Amended and Restated Agreements, as provided in such Agreements. Lakes
          shall, upon the execution of this Agreement, no longer have the
          benefit of any limited waiver of sovereign immunity provided in the
          Obligations except, as to the Second Amended and Restated Agreements,
          the Account Control Agreement, as amended, and the Pledge and Security
          Agreement, as amended, as provided in such Agreements. Nothing in this
          Agreement waives or prejudices any rights Lakes or LG&R may have under
          the terms of their Guaranty, or affects any limited waiver of
          sovereign immunity in such Guaranty.

4.   Covenants and Representations of Lakes and Great Lakes.

     a.   This Agreement constitutes the legal, valid and binding obligation of
          Great Lakes and Lakes, and is fully enforceable in accordance with its
          terms.

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     b.   The Obligations constitute the legal, valid and binding obligation of
          Great Lakes, and are fully enforceable in accordance with their terms.

     c.   The Guaranty constitutes the legal, valid and binding obligation of
          Lakes and LG&R, and is fully enforceable in accordance with their
          terms

     d.   Neither the execution or delivery of this Agreement nor fulfillment of
          or compliance with the terms and provisions hereof, will conflict
          with, or result in a breach of the terms, conditions or provisions of,
          constitute a default under or result in the creation of any lien,
          charge or encumbrance upon any property or assets of Lakes or Great
          Lakes under any agreement or instrument to which either of them is now
          a party or by which either of them is or may in the future be bound.

     e.   The fulfillment of and compliance with the terms and provisions of the
          Obligations will not conflict with, result in a breach of the terms,
          conditions or provisions of, constitute a default under, or result in
          the creation of any lien, charge or encumbrance upon any property or
          assets of Great Lakes under any agreement or instrument to which it is
          now a party or by which it is or may in the future be bound.

     f.   The Band has, and shall have until the termination of the Pledge
          Agreement in accordance with 12 thereof, a first perfected security
          interest in the Account.

5.   Covenants and Representations of the Band.

     a.   This Agreement constitutes the legal, valid and binding obligation of
          the Band, and is fully enforceable in accordance with its terms.

     b.   Neither the execution or delivery of this Agreement nor fulfillment of
          or compliance with the terms and provisions hereof, will conflict
          with, or result in a breach of the terms, conditions or provisions of,
          constitute a default under or result in the creation of any lien,
          charge or encumbrance upon any property or assets of the Band under
          any agreement or instrument to which it is now a party or may in the
          future be bound.

6.   Further Assurances. From time to time hereafter, Lakes, Great Lakes and/or
     the Band will execute and deliver, or will cause to be executed and
     delivered, such additional instruments, certificates or documents, and will
     take all such actions, as may reasonably be requested by the other party or
     parties, for the purpose of implementing or effectuating the provisions of
     this Agreement.

7.   Governing Law; Severability. This Agreement shall be interpreted in
     accordance with the law of Michigan. Wherever possible each provision of
     this Agreement shall be interpreted in such manner as to be effective and
     valid under applicable law, but if any provisions of this Agreement shall
     be prohibited by, unenforceable or invalid under applicable law, such
     provision shall be ineffective to the extent of such prohibition,
     unenforceability or invalidity, without invalidating the remainder of such
     provision or the remaining provisions of this Agreement.

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8.   Amendments, Assignments, Etc. Any provision of this Agreement may be
     amended if, but only if, such amendment is in writing and is signed by each
     of the parties hereto. No modification shall be implied from course of
     conduct. Great Lakes may not further assign its rights and obligations
     hereunder and under the Obligations without the written consent of the
     Band.

9.   Gender and Number; Counterparts. Whenever the context so requires the
     masculine gender shall include the feminine and/or neuter and the singular
     number shall include the plural, and conversely in each case. This
     Agreement may be executed in separate counterparts and said counterparts
     shall be deemed to constitute one binding document.

10.  Notices. Great Lakes agrees that any notice or demand upon it shall be
     deemed to be sufficiently given or served if it is in writing and is
     personally served or in lieu of personal service is mailed by first class
     certified mail, postage prepaid, or be overnight mail or courier service,
     addressed to Great Lakes at the address of Lakes and with copies as set
     forth in Section 15.4 of the Development Agreement. Notice to the Band
     shall be given as provided in Section 15.4 of the Development Agreement.
     Any notice or demand so mailed shall be deemed received on the date of
     actual receipt, on the third business day following mailing as herein set
     forth or one day following delivery to a courier service, whichever first
     occurs.

11.  Arbitration; Limited Waiver of Sovereign Immunity. Any disputes under this
     Agreement shall be subject to arbitration as provided in 14.2 of the
     Second Amended and Restated Development Agreement; provided that any demand
     for arbitration shall be made within 30 days after a notice of default,
     denominated as such, is given under this Agreement. The Band's limited
     waiver of sovereign immunity in 14.1 and 14.3 of the Second Amended and
     Restated Development Agreement shall apply to this Agreement; provided that
     the liability of the Band under any judgment shall always be Limited
     Recourse, and in no instance shall any enforcement of any kind whatsoever
     be allowed against any assets of the Band other than the limited assets of
     the Band specified in Section 14.3(a) of the Second Amended and Restated
     Development Agreement.

12.  Ratification. Great Lakes, the Band and Lakes each ratify and confirm the
     Assignment and Assumption Agreement, as amended hereby, which remains in
     full force and effect.

     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to
Assignment and Assumption Agreement to be executed as of the day first above
written.

WITNESS:                                 GREAT LAKES GAMING OF MICHIGAN, LLC

                                         BY: /s/ Timothy Cope
                                             -----------------------------------
                                         NAME: Timothy J. Cope
                                         ITS: President

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                                         LAKES ENTERTAINMENT, INC., f/k/a Lakes
                                            Gaming, Inc.

                                         BY: /s/ Timothy Cope
                                             -----------------------------------
                                         NAME: Timothy J. Cope
                                         ITS: President

                                         THE POKAGON BAND OF POTAWATOMI INDIANS

                                         By: /s/ John Miller
                                             -----------------------------------
                                         Its: Council Chairman

                                         By: /s/ Dan Rapp
                                             -----------------------------------
                                         Its: Secretary

Seen and agreed:

                                         LAKES GAMING AND RESORTS, LLC

                                         BY: /s/ Timothy Cope
                                             -----------------------------------
                                         NAME: Timothy J. Cope
                                         ITS: President

                                        6<PAGE>
                                                                  Exhibits 10.80

                                                               EXECUTION VERSION

                    REAFFIRMATION OF GUARANTIES AND MORTGAGES

     This Reaffirmation is dated as of the 22nd day of December, 2004, by and
among the Pokagon Properties, LLC, a Delaware limited liability company
("PPLLC") and Filbert Land Development, LLC, an Indiana limited liability
company ("Filbert" and together with PPLLC, collectively the "Band Designees")
and Great Lakes Gaming of Michigan, LLC, a Minnesota limited liability company
("Lakes"):

                                   WITNESSETH:

     WHEREAS, the Band and Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc.
("Lakes Entertainment") previously entered into a Development Agreement dated as
of July 8, 1999, as assigned by Lakes Entertainment to Lakes pursuant to that
certain Assignment and Assumption Agreement dated October 16, 2000, by and among
the Band, Lakes Entertainment and Lakes, and as amended and restated by that
certain First Amended and Restated Development Agreement dated October 16, 2000
by and between the Band and Lakes, and as amended and restated by that certain
Second Amended and Restated Development Agreement dated as of December 22, 2004
by and between the Band and Lakes (collectively and as heretofore and hereafter
amended, the "Development Agreement"), pursuant to which the Band has engaged
Lakes to, among other things, assist the Band in the design, development,
construction and management of the Facility; and

     WHEREAS, Article 2 of the Development Agreement provides, among other
things, that Lakes shall finance the acquisition of all parcels of land
comprising the Gaming Site and the Non-Gaming Lands through the making of
advances (a) under the Lakes Note for the acquisition of each parcel of land
constituting the Gaming Site (all such advances, whether heretofore or hereafter
made, shall be collectively referred to as the "Gaming Site Advances"), and (b)
under the Non-Gaming Land Acquisition Line of Credit for each parcel of land
constituting the Non-Gaming Lands (all such advances, whether heretofore or
hereafter made, shall be collectively referred to as the "Non-Gaming Land
Advances" and together with all Gaming Site Advances shall be collectively
referred to as the "Advances"); and

     WHEREAS, as further provided in Article 2 of the Development Agreement, all
of the Gaming Site Advances and the Non-Gaming Land Advances are to be secured
by mortgages in favor of Lakes on the related parcels of land constituting the
Gaming Site and the Non-Gaming Lands; and

     WHEREAS, the Band, with the consent of Lakes, has formed and may hereafter
form certain related entities known as "Band Designees", including but not
limited to PPLLC and Filbert, for the purpose of, at Band's option, acquiring
title to all or a portion of the Gaming Site and all or a portion of the
Non-Gaming Lands; and

<PAGE>

     WHEREAS, each of the Advances (to the extent made in connection with any
Band Designee's acquisition of Gaming Site or Non-Gaming Land parcels) will be
made available by the Band to the Band Designee for the purpose of paying all
costs associated with the acquisition of the parcels of land constituting the
Gaming Site and the Non-Gaming Lands; and

     WHEREAS, Lakes has required and will be requiring each Band Designee to
execute and deliver to Lakes certain Band Designee Guaranties and Band Designee
Mortgages (as each of such terms are defined in the Development Agreement) and
amendments thereto from time to time, including without limitation the Band
Designee Guaranties and Band Designee Mortgages described on Exhibit A attached
hereto, in connection with each acquisition of parcels of land related to the
Gaming Site and the Non-Gaming Lands, all as a condition precedent to the making
of such Advances; and

     WHEREAS, in connection with the execution of the Second Amended and
Restated Development Agreement, Lakes requires each of the Band Designees to
reaffirm the Band Designee Guaranties and Band Designee Mortgages and the Band
Designees desire to reaffirm each of the Band Designee Guaranties and Band
Designee Mortgages pursuant to the terms hereof.

     NOW, THEREFORE, for valuable consideration, the receipt of which is hereby
acknowledged, and as an inducement to the Lakes to make the Advances to the Band
and to execute the Second Amended and Restated Development Agreement, each of
the Band Designees agrees as follows:

     1. Recitals True. The above recitals are true.

     2. Definitions. Capitalized terms used but not otherwise defined herein and
defined in the Development Agreement, the Band Designee Guaranties or the Band
Designee Mortgages, as applicable, shall have the same meaning herein as
therein.

     3. Consent and Reaffirmation. Each Band Designee hereby (i) acknowledges
receipt of a copy, and consents to the execution and delivery by the Band, of
the Second Amended and Restated Development Agreement and each of the other
Transaction Documents (as defined in the such Second Amended and Restated
Development Agreement and including, without limitation, each of the documents
and agreements referenced in Section 15.17 thereof), and further consents to
each of the terms and provisions set forth therein, and (ii) represents,
warrants and confirms that each of the Band Designee Guaranties and Band
Designee Mortgages executed by it remains in full force and effect in accordance
with its original terms.

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

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Dated as of December 22, 2004

                                        POKAGON PROPERTIES, LLC, A DELAWARE
                                        LIMITED LIABILITY COMPANY

                                        By: Pokagon Band of Potawatomi Indians
                                        Its: Member

                                        By: /s/ John Miller
                                            ------------------------------------
                                            John Miller
                                        Its: Chairman

                                        And

                                        By: /s/ Daniel Rapp
                                            ------------------------------------
                                            Daniel Rapp
                                        Its: Secretary

                                        FILBERT LAND DEVELOPMENT, LLC,
                                        AN INDIANA LIMITED LIABILITY COMPANY

                                        By: Pokagon Band of Potawatomi Indians
                                        Its: Member

                                        By: /s/ John Miller
                                            ------------------------------------
                                            John Miller
                                        Its: Chairman

                                        And

                                        By: /s/ Daniel Rapp
                                            ------------------------------------
                                            Daniel Rapp
                                        Its: Secretary

                                        3

<PAGE>

                                    EXHIBIT A

               SCHEDULE OF BAND DESIGNEE MORTGAGES AND GUARANTIES

I.   SCHEDULE OF MORTGAGES

     A.   BERRIEN COUNTY, MICHIGAN MORTGAGES:

          1.   Pokagon Properties, LLC executed and delivered to Lakes Gaming,
               Inc. that certain Mortgage dated March 9, 2000 which Mortgage was
               recorded on March 24, 2000 in Liber 2040, Page 1032, Berrien
               County Register of Deeds ("Berrien Mortgage").

          2.   The Berrien Mortgage was amended by that certain Amendment to
               Mortgage dated April 20, 2000 which Amendment was recorded on
               April 28, 2000 in Liber 2047, Page 1205, Berrien County Register
               of Deeds.

          3.   The Berrien Mortgage was further amended by that certain Second
               Amendment to Mortgage dated May 9, 2000 which Second Amendment
               was recorded on May 18, 2000 in Liber 2052, Page 959, Berrien
               County Register of Deeds.

          4.   The Berrien Mortgage was further amended by that certain Third
               Amendment to Mortgage dated June 8, 2000 which Third Amendment
               was recorded on July 11, 2000 in Liber 2063, Page 1512 and Page
               1520, Berrien County Register of Deeds.

     B.   VAN BUREN COUNTY, MICHIGAN MORTGAGES:

          1.   Pokagon Properties, LLC executed and delivered to Lakes Gaming,
               Inc. that certain Mortgage dated March 9, 2000 which Mortgage was
               recorded on March 28, 2000 in Liber 1287, Page 0547, Van Buren
               County Register of Deeds ("Van Buren Mortgage").

          2.   The Van Buren Mortgage was amended by that certain Amendment to
               Mortgage dated July 17, 2000 which Amendment was recorded on
               September 14, 2000 in Liber 1314, Page 0854, Van Buren County
               Register of Deeds.

          3.   The Van Buren Mortgage was further amended by that certain Second
               Amendment to Mortgage dated November 14, 2000 by Pokagon
               Properties, LLC and Great Lakes Gaming of Michigan, LLC which
               Amendment was recorded on May 1, 2001 in Book 1330 at Page 960,
               Van Buren County Register of Deeds.

<PAGE>

          C.   CASS COUNTY, MICHIGAN MORTGAGES:

          1.   Pokagon Properties, LLC executed and delivered to Lakes Gaming,
               Inc. that certain Mortgage dated September 25, 2000 which
               Mortgage was recorded on October 18, 2000 in Liber 00747, Page
               0159, Cass County Register of Deeds ("Cass Mortgage").

          2.   The Cass Mortgage was amended by that certain Amendment to
               Mortgage by Pokagon Properties, LLC and Great Lakes Gaming of
               Michigan, LLC dated November 14, 2000 which Amendment was
               recorded on January 8, 2001 in Liber 00754, Page 0511, Cass
               County Register of Deeds.

          3.   The Cass Mortgage was further amended by that certain Second
               Amendment to Mortgage by Pokagon Properties, LLC and Great Lakes
               Gaming of Michigan, LLC dated December 14, 2000 which Amendment
               was recorded on April 30, 2001 in Liber 00766, Page 1137, Cass
               County Register of Deeds.

          4.   The Cass Mortgage was further amended by that certain Third
               Amendment to Mortgage by Pokagon Properties, LLC and Great Lakes
               Gaming of Michigan, LLC dated February 7, 2001 which Amendment
               was recorded on April 30, 2001 in Liber 00766, Page 1172, Cass
               County Register of Deeds.

          5.   The Cass Mortgage was further amended by that certain Fourth
               Amendment to Mortgage by Pokagon Properties, LLC and Great Lakes
               Gaming of Michigan, LLC dated April 30, 2001 which Amendment was
               recorded on June 8, 2001 in Liber 00772, Page 1074, Cass County
               Register of Deeds.

          6.   A Partial Discharge of the Cass Mortgage, dated October 7, 2003,
               was executed by Great Lakes Gaming of Michigan, LLC, which
               Partial Discharge of Mortgage was recorded on December 29, 2003,
               in Liber 00974, pp. 0907 and 0908, Cass County Register of Deeds.

II.  BAND DESIGNEE GUARANTIES

     A.   FILBERT LAND DEVELOPMENT, LLC ("FILBERT")

          1.   Filbert executed and delivered to Great Lakes Gaming of Michigan,
               LLC that certain Guaranty dated February 28, 2001.

<PAGE>

     B.   POKAGON PROPERTIES, LLC ("POKAGON")

          1.   Pokagon executed and delivered to Lakes Gaming, Inc. that certain
               Guaranty dated March 9, 2000 ("Pokagon Guaranty").

          2.   Lakes Gaming, Inc.'s rights and obligations under the Pokagon
               Guaranty were assigned to Great Lakes of Michigan, LLC pursuant
               to that certain Assignment and Assumption Agreement dated October
               16, 2000 by and among Great Lakes of Michigan, LLC, Lakes Gaming,
               Inc. and the Pokagon Band of Potawatomi Indians.

          ** Lakes Gaming, Inc. assigned its right, title and interest in these
     Mortgages to Great Lakes of Michigan, LLC by Assignment of Mortgage
     ("Assignment") dated October 16, 2000 which Assignment was recorded January
     17, 2001 in Book 1324, Page 529, Van Buren County Register of Deeds and
     recorded February 1, 2001 in Liber 2106, Page 21, Berrien County Register
     of Deeds and recorded January 5, 2001 in Liber 00754, Page 0186, Cass
     County Register of Deeds. On November 27, 2000, Great Lakes of Michigan,
     LLC changed its name to Great Lakes Gaming of Michigan, LLC.

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