Document:

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                                                                    Exhibit 10.6

                          GUARANTOR SECURITY AGREEMENT

      THIS AGREEMENT is made this 15 day of December, 2005, between each of the
undersigned, as debtor (herein individually and collectively called the
"DEBTOR") and LYLE BERMAN FAMILY PARTNERSHIP, a Minnesota general partnership
(herein, with its participants, successors and assigns, called the "SECURED
PARTY"), as secured party.

      Each Debtor has guaranteed the indebtedness of Lakes Entertainment, Inc.,
a Minnesota corporation and Lakes Poker Tour, LLC, a Minnesota limited liability
company (each a "Borrower" and together the "Borrowers") to the Secured Party
pursuant to the terms of that certain Guaranty of even date herewith (the
"Guaranty"). All capitalized terms not otherwise defined herein, shall have the
meaning set forth in that certain Loan Agreement of even date herewith by and
between the Debtor and the Borrowers (the "Loan Agreement").

      For good and valuable consideration, each Debtor hereby agrees for the
benefit of the Secured Party as follows:

      1.01 Debtor hereby grants the Secured Party a security interest
(collectively referred to as the "Security Interests") in all personal property
of the Debtor, including the property described below, as security for the
payment and performance of each and every debt, liability and obligation of
every type and description which Debtor or Borrowers, may now or at any time
hereafter owe to the Secured Party arising under the Guaranty (whether such
debt, liability or obligation now exists or is hereafter created or incurred,
and whether it is direct or indirect, due or to become due, absolute or
contingent, primary or secondary, liquidated or unliquidated, or sole, joint,
several or joint and several; all such debts, liabilities and obligations are
herein collectively referred to as the "Obligations"). The Security Interests
shall attach to all personal property of Debtor and all products and proceeds
thereof, whether now owned or hereafter acquired, including the following
(collectively, the "Collateral"):

            (a) All equipment ("Equipment") fixtures, and inventory
("Inventory") (including all goods held for sale, lease or demonstration or to
be furnished under contracts of service, goods leased to others, trade-ins and
repossessions, raw materials, work in process and materials or supplies used or
consumed in Debtor's business), including all spare and repair parts, special
tools, equipment and replacements for any of the foregoing, and any software
embedded therein or related thereto;

            (b) All accounts ("Receivables"), contract rights, documents,
chattel paper (including electronic chattel paper), instruments, and general
intangibles, and all returned or repossessed goods the sale of which gave rise
to any of the foregoing;

            (c) All financial assets, investment property, securities (whether
certificated or uncertificated, and including investment company securities),
security entitlements, securities accounts, commodity contracts, and commodity
accounts, including all substitutions and additions thereto, and all dividends,
distributions and sums distributable or payable from, upon or in respect of such
property;

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            (d) All commercial tort claims;

            (e) All deposit accounts;

            (f) All letter-of-credit rights;

            (g) All supporting obligations that support the payment or
performance of any of the foregoing; and

            (h) All additions and accessions to, all proceeds, products,
offspring and profits of, and all rights and privileges incident to, any of the
foregoing.

      1.02 Debtor represents, warrants and agrees that:

      (a) Debtor has (or will have at the time it acquires rights in Collateral
hereafter arising) and will maintain so long as the Security Interests may
remain outstanding, absolute title to each item of Collateral and all proceeds
thereof, free and clear of all interests, liens, attachments, encumbrances and
security interests except the Security Interests as provided herein, and except
as the Secured Party may otherwise agree in writing. Debtor will defend the
Collateral against all claims or demands of all persons (other than the Secured
Party) claiming the Collateral or any interest therein, Debtor will not sell or
otherwise dispose of any material portion of the Collateral or any interest
therein except for the sale of Inventory in the normal course of Debtor's
business, without the Secured Party's prior written consent.

      (b) Debtor does business solely under its own name and the trade names (if
any) set forth below (or if none are listed, Debtor warrants that it does not
have any tradenames). The chief executive office of Debtor is located at the
address set forth below and all of Debtor's records relating to its business or
the Collateral are kept at that location. The addresses where the Collateral
will be kept, if different from that appearing below Debtor's signature, are set
forth in Exhibit A. No Collateral will be kept at any other location, except for
job sites from time to time, without the prior written consent of Secured Party,
but the parties intend that the Collateral, wherever located, is covered by this
Agreement. Debtor will not permit any tangible Collateral or any records
pertaining to Collateral to be located in any state or area in which, in the
event of such location, a financing statement covering such Collateral would be
required to be, but has not in fact been, filed in order to perfect the Security
Interests. Debtor will not change its name or the location of its place of
business, without prior written notice to the Secured Party. Debtor shall advise
Secured Party in writing at least thirty (30) days before any change of name,
identity, form of organization, state of organization, corporate structure, or
chief executive office.

      (c) [Intentionally omitted].

      (d) Each right to payment and each instrument, document, chattel paper and
other agreement constituting or evidencing Collateral is (or, in the case of all
future Collateral, will be when arising or issued) the valid, genuine and
legally enforceable obligation, subject to no defense, setoff or counterclaim,
of the account debtor or other obligor named therein or in Debtor's records

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pertaining thereto as being obligated to pay such obligation. Except in the
ordinary course of Debtor's business, Debtor will not agree to modify, amend,
subordinate, cancel or terminate the obligation of any such account debtor or
other obligor, without the Secured Party's prior written consent.

      (e) Debtor will keep all tangible Collateral in good repair, working order
and condition, normal depreciation excepted, and will, from time to time,
replace any worn, broken or defective parts.

      (f) Debtor will promptly pay all taxes and other governmental charges
levied or assessed upon or against any Collateral or upon or against the
creation, perfection or continuance of the Security Interests.

      (g) Debtor will keep all Collateral free and clear of all security
interests, liens and encumbrances except the Security Interests provided herein
and except other security interests approved in writing by the Secured Party.

      (h) Debtor will at all reasonable times permit the Secured Party or its
representatives to examine or inspect any Collateral, or any evidence of
Collateral, wherever located, and Debtor will at any time and from time to time
send requests for verification of accounts or notices of assignment to account
debtors and other obligors.

      (i) Debtor will keep accurate and complete records pertaining to the
Collateral and pertaining to Debtor's business and financial condition, prepared
on the basis of generally accepted accounting principles consistently applied;
will submit to the Secured Party such weekly, monthly and other periodic reports
concerning the Collateral and Debtor's business and financial condition as the
Secured Party may from time to time request; and will permit the Secured Party,
or its employees, accountants, attorneys or agents, to examine and copy any or
all of its records at any time during Debtor's business hours.

      (j) Debtor will promptly notify the Secured Party of any loss of or
material damage to any Collateral or of any substantial adverse change, known to
Debtor, in any Collateral or the prospect of payment thereof.

      (k) Upon request by the Secured Party, whether such request is made before
or after the occurrence of an Event of Default, Debtor will promptly deliver to
the Secured Party in pledge all instruments, documents and chattel papers
constituting Collateral, duly endorsed or assigned by Debtor.

      (l) Debtor will at all times keep its business and all tangible Collateral
insured against risks of fire (including so-called extended coverage), theft,
collision (for Collateral consisting of motor vehicles) and such other risks and
in such amounts as the Secured Party may reasonably request, with a Secured
Party's loss payee endorsement to the Secured Party to the extent of its
interest.

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      (m) Debtor will pay or reimburse the Secured Party on demand for all costs
of collection of any of the Obligations and all other out-of-pocket expenses
(including in each case all reasonable attorneys' fees and legal expenses)
incurred by the Secured Party in connection with the creation, perfection,
protection, satisfaction, foreclosure or enforcement of the Security Interests
or the creation, continuance or enforcement of this Agreement or any or all of
the Obligations.

      (n) Debtor will use and keep the Collateral, and will require that others
use and keep the Collateral, only for lawful purposes, without violation of any
federal, state or local law, statute or ordinance.

      (o) Debtor from time to time will execute and deliver or endorse any and
all instruments, documents, conveyances, assignments, security agreements,
financing statements and other agreements and writings which the Secured Party
may reasonably request in order to secure, protect, perfect or enforce the
Security Interests or the rights of the Secured Party under this Agreement (but
any failure to request or assure that Debtor executes, delivers or endorses any
such item shall not affect or impair the validity, sufficiency or enforceability
of this Agreement and the Security Interests, regardless of whether any such
item was or was not executed, delivered or endorsed in a similar context or on a
prior occasion).

      If Debtor at any time fails to perform or observe any of the foregoing
agreements, and if such failure shall continue for a period of 30 calendar days
after the Secured Party gives Debtor written notice thereof (or in the case of
the agreements contained in clauses (g) and (1) above, immediately upon the
occurrence of such failure, without notice or lapse of time), the Secured Party
may, but need not, perform or observe such agreement on behalf and in the name,
place and stead of Debtor (or, at the Secured Party's option, in the Secured
Party's name) and may, but need not, take any and all other actions which the
Secured Party may reasonably deem necessary to cure or correct such failure
(including, without limitation, the payment of taxes, the satisfaction of
security interests, liens or encumbrances, the performance of obligations owed
to account debtors or other obligors, the procurement and maintenance of
insurance, the execution of assignments, security agreements and financing
statements, and the endorsement of instruments); and Debtor shall thereupon pay
to the Secured Party on demand the amount of all monies expended and all costs
and expenses (including reasonable attorneys' fees and legal expenses) incurred
by the Secured Party in connection with or as a result of the performance or
observance of such agreements or the taking of such action by the Secured Party,
together with interest thereon from the date expended or incurred at the highest
lawful rate then applicable to any of the Obligations. Subject to the 30 day
cure period, to facilitate the performance or observance by the Secured Party of
such agreements to Debtor, Debtor hereby irrevocably appoints the Secured Party,
or the delegate of the Secured Party, acting alone, as the attorney-in-fact of
Debtor with the right (but not the duty) from time to time to create, prepare,
complete, execute, deliver, endorse or file in the name and on behalf of Debtor
any and all instruments, documents, assignments, security agreements, financing
statements, applications for insurance and other agreements and writings
required to be obtained, executed, delivered or endorsed by Debtor under this
Section 1.02.

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      1.03 With respect to any or all rights to payment constituting Collateral
the Secured Party may at any time after the occurrence of an Event of Default
notify any account debtor or other person obligated to pay the amount due that
such right to payment has been assigned or transferred to the Secured Party for
security and shall be paid directly to the Secured Party. Debtor will join in
giving such notice, if the Secured Party so requests. At any time after Debtor
or the Secured Party gives such notice to an account debtor or other obligor,
the Secured Party may, but need not, in the Secured Party's name or in Debtor's
name demand, sue for, collect or receive any money or property at any time
payable or receivable on account of, or securing, any such right to payment, or
grant any extension to, make any compromise or settlement with or otherwise
agree to waive, modify, amend or change the obligations (including collateral
obligations) of any such account debtor or other obligor;.

      1.04 As additional security for the payment and performance of the
Obligations, Debtor hereby assigns to the Secured Party any and all monies
(including, without limitation, proceeds of insurance and refunds of unearned
premiums) due or to become due under, and all other rights of Debtor with
respect to, any and all policies of insurance now or at any time hereafter
covering the Collateral or any evidence thereof or any business records or
valuable papers pertaining thereto, and Debtor hereby directs the issuer of any
such policy to pay all such monies directly to the Secured Party after the
occurrence of any Event of Default, the Secured Party may (but need not), in the
Secured Party's name or in Debtor's name, execute and deliver proof of claim,
receive all such monies, endorse checks and other instruments representing
payment of such monies, and adjust, litigate, compromise or release any claim
against the issuer of any such policy.

      1.05 Upon the occurrence of any Event of Default and at any time
thereafter, the Secured Party may exercise one or more of the following rights
and remedies: (i) declare all unmatured Obligations to be immediately due and
payable, and the same shall thereupon be immediately due and payable, without
presentment or other notice or demand (but the Secured Party expressly reserves
the right to demand payment of any Obligation payable on demand, at any time,
whether or not an Event of Default has occurred or is continuing); (ii) exercise
and enforce any and all rights and remedies available upon default to a secured
party under the Uniform Commercial Code, including, without limitation, the
right to take possession of Collateral, or any evidence thereof, proceeding
without judicial process or by judicial process (without a prior hearing or
notice thereof, which Debtor hereby expressly waives) and the right to sell,
lease or otherwise dispose of any or all of the Collateral, and in connection
therewith Debtor will on demand assemble the collateral and make it available to
the Secured Party at a place to be designated by the Secured Party which is
reasonably convenient to both parties, and the Secured Party shall have the
right to take immediate possession of the Collateral and may enter any of the
premises of Debtor or wherever the Collateral is located with or without process
of law and to keep and store the same on said premises until sold (and if said
premises be the property of Debtor, Debtor agrees not to charge the Secured
Party or a purchaser from the Secured Party for storage thereof for a period of
at least 90 days). If notice to Debtor of any intended disposition of Collateral
or any other intended action is required by law in a particular instance, such
notice shall be deemed commercially reasonable if given (in the manner specified
in Section 1.07) at least ten (10) calendar days prior to the date of intended
disposition or other action; (iii) without notice or demand offset any
indebtedness the Secured Party or any of its

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participants, successors or assigns then owes to Debtor, whether or not then
due, against any Obligation then owed to the Secured Party or any of its
participants, successors or assigns by Debtor, whether or not then due; and (iv)
exercise or enforce any and all other rights or remedies available by law or
agreement against the Collateral, against Debtor, or against any other person or
property. The proceeds of all sales and collections will be applied first to all
reasonable expenses of retaking, holding, preparing for sale, selling and the
like, including reasonable attorneys' fees and legal expenses (whether or not
suit is commenced) including, without limitation, reasonable attorneys' fees and
legal expenses incurred in connection with any appeal of a lower court's order
or judgment and second to the payment (in whatever order the Secured Party
elects) of all other Obligations chargeable to Debtor in connection with the
loan transactions with Secured Party. Subject to the provisions of the
Commercial Code, the Secured Party will return any excess to the Debtor and the
Debtor shall remain liable to the Secured Party for any deficiency.

      1.06 This Agreement does not contemplate a sale of accounts, contract
rights or chattel paper, and, as provided by law, Debtor is entitled to any
surplus and shall remain liable for any deficiency. The Secured Party's duty of
care with respect to Collateral in its possession (as imposed by law) shall be
deemed fulfilled in the selection of the bailee or other third person, and the
Secured Party need not otherwise preserve, protect, insure or care for any
Collateral. The Secured Party shall not be obligated to preserve any rights
Debtor may have against prior parties, to realize on the Collateral at all or in
any particular manner in order or to apply any cash proceeds of the Collateral
in any particular order of application.

      1.07 This Agreement can be waived, modified, amended, terminated or
discharged, and the Security Interests can be released, only explicitly in a
writing signed by the Secured Party. A waiver so signed shall be effective only
in the specific instance and for the specific purpose given. Mere delay or
failure to act shall not preclude the exercise or enforcement of any rights or
remedies available to the Secured Party. All rights and remedies of the Secured
Party shall be cumulative and may be exercised singularly in any order or
sequence, or concurrently, at the Secured Party's option, and the exercise or
enforcement of any such right or remedy shall neither be a condition to nor bar
the exercise or enforcement of any other. All notices to be given to Debtor
shall be deemed sufficiently given if delivered or mailed by registered,
certified or ordinary mail, postage prepaid, to Debtor at its address set forth
below or at its most recent address shown on the Secured Party's records.

      1.08 An Event of Default under the Loan Agreement shall constitute an
"Event of Default" hereunder.

      1.09 The Secured Party and its participants, if any, are not partners or
joint venturers, and the Secured Party shall not have any liability or
responsibility for any obligation, act or omission of any of its participants.

      1.10 Debtor hereby:

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      (a) waives (A) presentment, demand, notice of nonpayment, protest and
notice of protest on the Obligations; and (B) notice of the creation or
incurrence of the Obligations;

      (b) agrees that Secured Party may from time to time, without notice to
Debtor, which notice is hereby waived by Debtor, extend, review or compromise
the Obligations, in whole or in part, without releasing, extinguishing or
affecting in any manner whatsoever the security interest granted hereunder, the
foregoing acts being hereby consented to by Debtor;

      (c) agrees that Secured Party shall not be required to first resort for
payment to any other person, entity or corporation, their properties or estates,
or any other right to remedy whatsoever, prior to enforcing this Agreement;

      (d) agrees that this Agreement shall be and be construed as a continuing,
absolute and unconditional agreement of Debtor without regard to (A) the
validity, regularity or enforceability of the Obligations or the disaffirmance
thereof in any insolvency or bankruptcy proceeding relating to any Borrower
and/or the Debtor, or (B) any event or any conduct or action of the Secured
Party or and other party which might otherwise constitute a legal or equitable
discharge of a surety or of the mortgage or security interest granted hereunder
but for this provision;

      (e) agrees that this Agreement shall remain in full force and effect and
be binding upon Debtor until the Obligations are paid in full;

      (f) agrees that Secured Party is expressly authorized to renew, extend,
compromise, exchange, release or surrender, any or all collateral and security
pledged by the Debtor or any other party to Secured Party to secure all or any
part of the Obligations, with or without consideration and without notice to
Debtor and without in any manner affecting the security interest granted
hereunder; and that the security interest granted hereunder shall not be
affected or impaired by any failure, neglect or omission on the party of Secured
Party to realize upon the Obligations, or upon any collateral or security
therefor, nor by the taking by Secured Party of any other security agreement or
guaranty to secure the Obligations or any other indebtedness of any Borrower
and/or the Debtor to Secured Party, nor by any act or failure to act whatsoever
which but for this provision might or could in law or in equity act to release
the mortgage or security interest granted hereunder;

      (g) agrees that Debtor may be joined in any action or proceeding commenced
in connection with or based upon the Obligations and this Agreement may be
enforced in any such action or proceeding or in any independent action or
proceeding against Debtor shall any Borrower fail to duly and punctually pay any
of the principal of or interest, late charges or prepayment premium, if any, on
the Note, without any requirement that Secured Party first assert, prosecute or
exhaust any remedy or claim against any other party;

      (h) agrees that no waiver by Secured Party of any right or remedy shall be
a waiver of any other right or remedy of the same right or remedy on a later
occasion;

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      (i) agrees that no delay or failure by Secured Party to exercise any right
or remedy hereunder or under applicable law shall be a waiver of such right or
remedy; and no single or partial exercise by Secured Party of any such right or
remedy shall preclude other or further exercise thereof or the exercise of any
other right or remedy at another time;

      (j) agrees that each remedy of the Secured Party hereunder is distinct and
cumulative to each other right or remedy under any other document related
hereto, or afforded by law, and may be exercised concurrently or independently.

      1.11 This Agreement, and the Security Interests granted hereby, shall be
binding upon Debtor, its successors and assigns, and shall inure to the benefit
of and be enforceable by the Secured Party and each and all of its participants,
successors and assigns, and shall be effective when executed by Debtor and
delivered to the Secured Party whether or not this Agreement is executed by the
Secured Party. All rights and powers specifically conferred upon the Secured
Party may be transferred or delegated to any of the participants, successors or
assigns of the Secured Party. Except to the extent otherwise required by law,
this Agreement and the transaction evidenced hereby shall be governed by the
substantive laws of the state of Minnesota. If any provision or application of
this Agreement is held unlawful or unenforceable in any respect, such illegality
or unenforceability shall not affect other provisions or applications which can
be given effect, and this Agreement shall be construed as if the unlawful or
unenforceable provision or application had never been contained herein or
prescribed hereby. All representations and warranties contained in this
Agreement or in any other agreement between Debtor and the Secured Party shall
survive the execution, delivery and performance of this Agreement and the
creation and payment of the Obligations. Debtor waives notice of the acceptance
of this Agreement by the Secured Party.

              [The rest of this page is intentionally left blank.]

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      IN WITNESS WHEREOF, this Security Agreement has been duly executed and
delivered by the proper officers thereunto duly authorized on the day and year
first above written.

                                   GREAT LAKES GAMING OF MICHIGAN, LLC

                                   By: /s/ Timothy Cope
                                       --------------------------------------
                                        Timothy Cope
                                   Its: Chief Financial Officer
                                   Address: 130 Cheshire Lane
                                            Minnetonka, MN 55305

                                   LAKES JAMUL, INC.

                                   By: /s/ Timothy Cope
                                       --------------------------------------
                                       Timothy Cope
                                   Its: Chief Financial Officer
                                   Address: 130 Cheshire Lane
                                            Minnetonka, MN 55305

                                   LAKES KEAN ARGOVITZ RESORTS - CALIFORNIA, LLC

                                   By: /s/ Timothy Cope
                                       --------------------------------------
                                        Timothy Cope
                                   Its: Chief Financial Officer
                                   Address: 130 Cheshire Lane
                                            Minnetonka, MN 55305

                  [SIGNATURE PAGE 1 OF 5 TO SECURITY AGREEMENT]

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                                             LAKES SHINGLE SPRINGS, INC.

                                             By: /s/ Timothy Cope
                                                 -------------------------------
                                                  Timothy Cope
                                             Its: Chief Financial Officer
                                             Address: 130 Cheshire Lane
                                                      Minnetonka, MN 55305

                                             LAKES KAR - SHINGLE SPRINGS, LLC

                                             By: /s/ Timothy Cope
                                                 -------------------------------
                                                  Timothy Cope
                                             Its: Chief Financial Officer
                                             Address: 130 Cheshire Lane
                                                      Minnetonka, MN 55305

                                             LAKES GAME DEVELOPMENT, LLC

                                             By: /s/ Timothy Cope
                                                 -------------------------------
                                                  Timothy Cope
                                             Its: Chief Financial Officer
                                             Address: 130 Cheshire Lane
                                                      Minnetonka, MN 55305

                                             LAKES NIPMUC, LLC

                                             By: /s/ Timothy Cope
                                                 -------------------------------
                                                  Timothy Cope
                                             Its: Chief Financial Officer
                                             Address: 130 Cheshire Lane
                                                      Minnetonka, MN 55305

                  [SIGNATURE PAGE 2 OF 5 TO SECURITY AGREEMENT]

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                                       LAKES COVERDALE, LLC

                                       By: /s/ Timothy Cope
                                           -------------------------------
                                            Timothy Cope
                                       Its: Chief Financial Officer
                                       Address: 130 Cheshire Lane
                                                Minnetonka, MN 55305

                                       PACIFIC COAST GAMING - SANTA ROSA, LLC

                                       By: /s/ Timothy Cope
                                           -------------------------------
                                            Timothy Cope
                                       Its: Chief Financial Officer
                                       Address: 130 Cheshire Lane
                                                Minnetonka, MN 55305

                                       BORDERS LAND COMPANY, LLC

                                       By: /s/ Timothy Cope
                                           -------------------------------
                                            Timothy Cope
                                       Its: Chief Financial Officer
                                       Address: 130 Cheshire Lane
                                                Minnetonka, MN 55305

                                       LAKES KICKAPOO CONSULTING, LLC

                                       By: /s/ Timothy Cope
                                           -------------------------------
                                            Timothy Cope
                                       Its: Chief Financial Officer
                                       Address: 130 Cheshire Lane
                                                Minnetonka, MN 55305

                  [SIGNATURE PAGE 3 OF 5 TO SECURITY AGREEMENT]

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                                       LAKES KICKAPOO MANAGEMENT, LLC

                                       By: /s/ Timothy Cope
                                           -------------------------------
                                            Timothy Cope
                                       Its: Chief Financial Officer
                                       Address: 130 Cheshire Lane
                                                Minnetonka, MN 55305

                                       LAKES IOWA CONSULTING, LLC

                                       By: /s/ Timothy Cope
                                           -------------------------------
                                            Timothy Cope
                                       Its: Chief Financial Officer
                                       Address: 130 Cheshire Lane
                                                Minnetonka, MN 55305

                                       LAKES IOWA MANAGEMENT, LLC

                                       By: /s/ Timothy Cope
                                           -------------------------------
                                            Timothy Cope
                                       Its: Chief Financial Officer
                                       Address: 130 Cheshire Lane
                                                Minnetonka, MN 55305

                                       LAKES PAWNEE CONSULTING, LLC

                                       By: /s/ Timothy Cope
                                           -------------------------------
                                            Timothy Cope
                                       Its: Chief Financial Officer
                                       Address: 130 Cheshire Lane
                                                Minnetonka, MN 55305

                  [SIGNATURE PAGE 4 OF 5 TO SECURITY AGREEMENT]

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                                       LAKES PAWNEE MANAGEMENT, LLC

                                       By: /s/ Timothy Cope
                                           -------------------------------
                                            Timothy Cope
                                       Its: Chief Financial Officer
                                       Address: 130 Cheshire Lane
                                                Minnetonka, MN 55305

                                       LAKES GAMING MISSISSIPPI, LLC

                                       By: /s/ Timothy Cope
                                           -------------------------------
                                            Timothy Cope
                                       Its: Chief Financial Officer
                                       Address: 130 Cheshire Lane
                                                Minnetonka, MN 55305

                  [SIGNATURE PAGE 5 OF 5 TO SECURITY AGREEMENT]<PAGE>

                                                                    Exhibit 10.7

                             STOCK PLEDGE AGREEMENT

      1. GRANT OF SECURITY INTEREST. For valuable consideration, the undersigned
("Debtor"), hereby assigns, transfers to and pledges with LYLE BERMAN FAMILY
PARTNERSHIP, a Minnesota general partnership ("Secured Party"), and grants to
Secured Party a security interest in:

      All WPT Enterprises, Inc. stock owed by Debtor (collectively called
"Collateral"), together with whatever is receivable or received when any of the
Collateral or proceeds thereof are sold, collected, exchanged or otherwise
disposed of, whether such disposition is voluntary or involuntary, including
without limitation, (a) all rights to payment, including returned premiums, with
respect to any insurance relating to any of the foregoing, (b) all rights to
payment with respect to any claim or cause of action affecting or relating to
any of the foregoing, and (c) all stock rights, rights to subscribe, stock
splits, liquidating dividends, dividends paid in stock, new securities or other
property of any kind which Debtor is or may hereafter be entitled to receive on
account of any securities pledged hereunder, including without limitation, stock
received by Debtor due to stock splits or dividends paid in stock or sums paid
upon or in respect of any securities pledged hereunder upon the liquidation or
dissolution of the issuer thereof (hereinafter called "Proceeds"), and in the
event that Debtor receives any such Proceeds, Debtor will hold the same in trust
on behalf of and for the benefit of Secured Party and will immediately deliver
all such Proceeds to Secured Party in the exact form received, with the
endorsement of Debtor if necessary and/or appropriate undated stock powers duly
executed in blank, to be held by Secured Party as part of the Collateral,
subject to all terms hereof. As long as there is no default under this
Agreement, the Debtor will retain all voting rights of the Collateral, and
receive all dividends.

Notwithstanding anything in this Agreement to the contrary, however, the
security interest granted hereby shall be deemed to be released with respect to
such shares of stock comprising the Collateral as Debtor is permitted to sell
pursuant to Section 3.2(c) of the Loan Agreement when and as such shares are
sold in accordance with and subject to such Section 3.2(c). Secured Party agrees
that it will file such partial releases to UCC financing statements, issue
written instructions to any intermediary with respect to a securities account in
which such shares are held, and take such other action as Debtor may reasonably
request to give effect to and evidence such release.

      2. OBLIGATIONS SECURED. The obligations secured hereby are the payment of
the obligations ("Indebtedness") of Debtor and Lakes Entertainment, Inc, a
Minnesota corporation, as "Borrowers" to Secured Party as "Lender" under the
Loan Agreement of even date herewith (the "Loan Agreement").

      3. TERMINATION. This Agreement will terminate upon the performance of all
obligations of Debtor to Secured Party, including without limitation, the
payment of all Indebtedness of Debtor to Secured Party, and the termination of
all commitments of Secured

<PAGE>

Party to extend credit to Debtor, existing at the time Secured Party receives
written notice from Debtor of the termination of this Agreement.

      4. OBLIGATIONS OF SECURED PARTY.

      (a) Except as provided in the Loan Agreement, Secured Party has no
obligation to make any loans hereunder. Any money received by Secured Party in
respect of the Collateral may be deposited, at Secured Party's option, into a
non-interest bearing account over which Debtor shall have no control, and the
same shall, for all purposes, be deemed Collateral hereunder.

      (b) Secured Party's obligation with respect to Collateral and Proceeds in
its possession shall be strictly limited to the duty to exercise reasonable care
in the custody and preservation of such Collateral and Proceeds, and such duty
shall not include any obligation to ascertain or to initiate any action with
respect to or to inform Debtor of maturity dates, conversion, call or exchange
rights, or offers to purchase the Collateral or Proceeds, or any similar
matters, notwithstanding Secured Party's knowledge of the same. Secured Party
shall have no duty to take any steps necessary to preserve the rights of Debtor
against prior parties, or to initiate any action to protect against the
possibility of a decline in the market value of the Collateral or Proceeds.
Secured Party shall not be obligated to take any action with respect to the
Collateral or Proceeds requested by Debtor unless such request is made in
writing and Secured Party determines, in its sole discretion, that the requested
action would not unreasonably jeopardize the value of the Collateral and
Proceeds as security for the Indebtedness. Secured Party may at any time deliver
the Collateral and Proceeds, or any part thereof, to Debtor, and the receipt
thereof by Debtor shall be a complete and full acquittance for the Collateral
and Proceeds so delivered, and Secured Party shall thereafter be discharged from
any liability or responsibility therefor.

      5. REPRESENTATIONS AND WARRANTIES. Debtor represents and warrants to
Secured Party that: (a) Debtor's legal name is exactly as set forth on the last
page of this Agreement, and all of Debtor's organizational documents or
agreements delivered to Secured Party are complete and accurate in every
material respect; (b) Debtor is the owner and has possession or control of the
Collateral and Proceeds; (c) Debtor has the exclusive right to pledge the
Collateral and Proceeds; (d) all Collateral and Proceeds are genuine, free from
liens, adverse claims, setoffs, default, prepayment, defenses and conditions
precedent of any kind or character, except the lien created hereby or as
otherwise agreed to by Secured Party, or as heretofore disclosed by Debtor to
Secured Party, in writing; (e) all statements contained herein and, where
applicable, in the Collateral, are true and complete in all material respects;
(f) no financing statement covering any of the Collateral or Proceeds, and
naming any secured party other than Secured Party, is on file in any public
office; (g) Debtor is a limited liability company registered under the laws of
the State of Minnesota and its chief executive office is located at the
following address: 130 Cheshire Lane, Minnetonka, MN 55305; and (h) specifically
with respect to Collateral and Proceeds consisting of investment securities,
instruments, chattel paper, documents, contracts, insurance policies or any like
property, (i) all persons appearing to be obligated thereon have authority and
capacity to contract and are bound as they appear to be, and

                                       2
<PAGE>

(ii) the same comply with applicable laws concerning form, content and manner of
preparation and execution.

      6. COVENANTS OF DEBTOR.

      (a) Debtor agrees in general: (i) to pay Indebtedness secured hereby when
due; (ii) to indemnify Secured Party against all losses, claims, demands,
liabilities and expenses of every kind caused by property subject hereto; (iii)
to pay all costs and expenses, including reasonable attorneys' fees, incurred by
Secured Party in the perfection and preservation of the Collateral or Secured
Party's interest therein and/or the realization, enforcement and exercise of
Secured Party's rights, powers and remedies hereunder; (iv) to permit Secured
Party to exercise its powers; (v) to execute and deliver such documents as
Secured Party deems necessary to create, perfect and continue the security
interests contemplated hereby; (vi) not to change its name, and as applicable,
its chief executive office, its principal residence or the jurisdiction in which
it is organized and/or registered without giving Secured Party prior written
notice thereof; (vii) not to change the places where Debtor keeps any Collateral
or Debtor's records concerning the Collateral and Proceeds without giving
Secured Party prior written notice of the address to which Debtor is moving
same; and (viii) to cooperate with Secured Party in perfecting all security
interests granted herein and in obtaining such agreements from third parties as
Secured Party deems necessary, proper or convenient in connection with the
preservation, perfection or enforcement of any of its rights hereunder.

      (b) Debtor agrees with regard to the Collateral and Proceeds, unless
Secured Party agrees otherwise in writing: (i) that Secured Party is authorized
to file financing statements in the name of Debtor to perfect Secured Party's
security interest in Collateral and Proceeds; (ii) not to permit any lien on the
Collateral or Proceeds, except in favor of Secured Party; (iii) except as
permitted by Section 3.2(c) of the Loan Agreement, not to sell, hypothecate or
otherwise dispose of, nor permit the transfer by operation of law of, any of the
Collateral or Proceeds or any interest therein; (iv) to keep, in accordance with
generally accepted accounting principles, complete and accurate records
regarding all Collateral and Proceeds, and to permit Secured Party to inspect
the same and make copies thereof at any reasonable time; (v) if requested by
Secured Party, to receive and use reasonable diligence to collect Proceeds, in
trust and as the property of Secured Party, and to immediately endorse as
appropriate and deliver such Proceeds to Secured Party daily in the exact form
in which they are received together with a collection report in form
satisfactory to Secured Party; (vi) not to commingle Collateral or Proceeds, or
collections thereunder, with other property; (vii) in the event Secured Party
elects to receive payments of Proceeds hereunder, to pay all expenses incurred
by Secured Party in connection therewith, including expenses of accounting,
correspondence, collection efforts, filing, recording, record keeping and
expenses incidental thereto; (viii) to provide any service and do any other acts
which may be necessary to keep all Collateral and Proceeds free and clear of all
defenses, rights of offset and counterclaims; and (ix) if the Collateral or
Proceeds consists of securities and so long as no Event of Default exists, to
vote said securities and to give consents, waivers and ratifications with
respect thereto, provided that no vote shall be cast or consent, waiver or
ratification given or action taken which would impair Secured Party's interests
in the Collateral and Proceeds or be inconsistent with or violate any provisions
of this Agreement.

                                       3
<PAGE>

      7. POWERS OF SECURED PARTY. Debtor appoints Secured Party its true
attorney in fact to perform any of the following powers, which are coupled with
an interest, are irrevocable until termination of this Agreement and may be
exercised from time to time by Secured Party's officers and employees if Debtor
is in default: (a) to perform any obligation of Debtor hereunder in Debtor's
name or otherwise; (b) to notify any person obligated on any security,
instrument or other document subject to this Agreement of Secured Party's rights
hereunder; (c) to collect by legal proceedings or otherwise all dividends,
interest, principal or other sums now or hereafter payable upon or on account of
the Collateral or Proceeds; (d) to enter into any extension, modification,
reorganization, deposit, merger or consolidation agreement, or any other
agreement relating to or affecting the Collateral or Proceeds, and in connection
therewith to deposit or surrender control of the Collateral and Proceeds, to
accept other property in exchange for the Collateral and Proceeds, and to do and
perform such acts and things as Secured Party may deem proper, with any money or
property received in exchange for the Collateral or Proceeds, at Secured Party's
option, to be applied to the Indebtedness or held by Secured Party under this
Agreement; (e) to make any compromise or settlement Secured Party deems
desirable or proper in respect of the Collateral and Proceeds; (f) to insure,
process and preserve the Collateral and Proceeds; (g) to exercise all rights,
powers and remedies which Debtor would have, but for this Agreement, with
respect to all Collateral and Proceeds subject hereto; and (h) to do all acts
and things and execute all documents in the name of Debtor or otherwise, deemed
by Secured Party as necessary, proper and convenient in connection with the
preservation, perfection or enforcement of its rights hereunder. To effect the
purposes of this Agreement or otherwise upon instructions of Debtor, or any of
them, Secured Party may cause any Collateral and/or Proceeds to be transferred
to Secured Party's name or the name of Secured Party's nominee. If an Event of
Default has occurred and is continuing, any or all Collateral and/or Proceeds
consisting of securities may be registered, without notice, in the name of
Secured Party or its nominee, and thereafter Secured Party or its nominee may
exercise, without notice, all voting and corporate rights at any meeting of the
shareholders of the issuer thereof, any and all rights of conversion, exchange
or subscription, or any other rights, privileges or options pertaining to such
Collateral and/or Proceeds, all as if it were the absolute owner thereof. The
foregoing shall include, without limitation, the right of Secured Party or its
nominee to exchange, at its discretion, any and all Collateral and/or Proceeds
upon the merger, consolidation, reorganization, recapitalization or other
readjustment of the issuer thereof, or upon the exercise by the issuer thereof
or Secured Party of any right, privilege or option pertaining to any shares of
the Collateral and/or Proceeds, and in connection therewith, the right to
deposit and deliver any and all of the Collateral and/or Proceeds with any
committee, depository, transfer agent, registrar or other designated agency upon
such terms and conditions as Secured Party may determine. All of the foregoing
rights, privileges or options may be exercised without liability on the part of
Secured Party or its nominee except to account for property actually received by
Secured Party. Secured Party shall have no duty to exercise any of the
foregoing, or any other rights, privileges or options with respect to the
Collateral or Proceeds and shall not be responsible for any failure to do so or
delay in so doing.

      8. PAYMENT OF PREMIUMS, TAXES, CHARGES, LIENS AND ASSESSMENTS. Debtor
agrees to pay, prior to delinquency, all insurance premiums, taxes, charges,
liens and assessments against the Collateral and Proceeds, and upon the failure
of Debtor to do so, Secured Party at its option may pay any of them and shall be
the sole judge of

                                       4
<PAGE>

the legality or validity thereof and the amount necessary to discharge the same.
Any such payments made by Secured Party shall be obligations of Debtor to
Secured Party, due and payable immediately upon demand, together with interest
at a rate determined in accordance with the provisions of Section 15 hereof, and
shall be secured by the Collateral and Proceeds, subject to all terms and
conditions of this Agreement.

      9. EVENTS OF DEFAULT. The occurrence of any of the following shall
constitute an "Event of Default" under this Agreement: (a) any default in the
payment or performance of the Indebtedness, or any defined event of default,
under (i) any contract or instrument evidencing any Indebtedness, or (ii) any
other agreement between Debtor and Secured Party, including without limitation
any loan agreement, relating to or executed in connection with the Loan
Agreement; (b) any representation or warranty made by Debtor herein shall prove
to be incorrect, false or misleading in any material respect when made; (c)
Debtor shall fail to observe or perform any obligation or agreement contained
herein; (d) any impairment in the rights of Secured Party in any Collateral or
Proceeds, or any attachment or like levy on any property of Debtor; and (e)
Secured Party, in good faith, believes any or all of the Collateral and/or
Proceeds to be in danger of misuse, dissipation, commingling, loss, theft,
damage or destruction, or otherwise in jeopardy or unsatisfactory in character
or value.

      10. REMEDIES. Upon the occurrence of any Event of Default, Secured Party
shall have the right to declare immediately due and payable all or any
Indebtedness secured hereby and to terminate any commitments to make loans or
otherwise extend credit to Debtor. Secured Party shall have all other rights,
powers, privileges and remedies granted to a secured party upon default under
the Minnesota Uniform Commercial Code or otherwise provided by law, including
without limitation, the (a) right to contact all persons obligated to Debtor on
any Collateral or Proceeds and to instruct such persons to deliver all
Collateral and/or Proceeds directly to Secured Party, and (b) to sell, lease,
license or otherwise dispose of any or all Collateral subject to compliance with
all securities laws. All rights, powers, privileges and remedies of Secured
Party shall be cumulative. No delay, failure or discontinuance of Secured Party
in exercising any right, power, privilege or remedy hereunder shall affect or
operate as a waiver of such right, power, privilege or remedy; nor shall any
single or partial exercise of any such right, power, privilege or remedy
preclude, waive or otherwise affect any other or further exercise thereof or the
exercise of any other right, power, privilege or remedy. Any waiver, permit,
consent or approval of any kind by Secured Party of any default hereunder, or
any such waiver of any provisions or conditions hereof, must be in writing and
shall be effective only to the extent set forth in writing. It is agreed that
the disposition of the Collateral shall comply with securities laws. While an
Event of Default exists: (a) Secured Party may, at any time and at Secured
Party's sole option, liquidate any time deposits pledged hereunder, whether or
not said time deposits have matured and notwithstanding the fact that such
liquidation may give rise to penalties for early withdrawal of funds; (b) Debtor
will not dispose of any Collateral or Proceeds except on terms approved by
Secured Party; (c) Secured Party may appropriate the Collateral and apply all
Proceeds toward repayment of the Indebtedness in such order of application as
Secured Party may from time to time elect; and (d) at Secured Party's request,
Debtor will assemble and deliver all Collateral and Proceeds, and books and
records pertaining thereto, to Secured Party at a reasonably convenient place
designated by Secured Party. For any Collateral or Proceeds consisting of
securities, Secured Party shall have no obligation to delay a disposition of any
portion thereof for the period

                                       5
<PAGE>

of time necessary to permit the issuer thereof to register such securities for
public sale under any applicable state or Federal law, even if the issuer
thereof would agree to do so. Debtor further agrees that Secured Party shall
have no obligation to process or prepare any Collateral for sale or other
disposition. Notwithstanding anything herein to the contrary, Secured Party
shall not give any entitlement orders or instructions, notices or requests to
any intermediary with respect to any account in which the Collateral is held or
any issuer of uncertificated securities constituting Collateral unless an Event
of Default has occurred and is continuing, other than in connection with the
release of any Collateral.

      11. DISPOSITION OF COLLATERAL AND PROCEEDS; TRANSFER OF INDEBTEDNESS. In
disposing of Collateral hereunder, Secured Party may disclaim all warranties of
title, possession, quiet enjoyment and the like. Any proceeds of any disposition
of any Collateral or Proceeds, or any part thereof, may be applied by Secured
Party to the payment of expenses incurred by Secured Party in connection with
the foregoing, including reasonable attorneys' fees, and the balance of such
proceeds may be applied by Secured Party toward the payment of the Indebtedness
in such order of application as Secured Party may from time to time elect. Upon
the transfer of all or any part of the Indebtedness, Secured Party may transfer
all or any part of the Collateral or Proceeds and shall be fully discharged
thereafter from all liability and responsibility with respect to any of the
foregoing so transferred, and the transferee shall be vested with all rights and
powers of Secured Party hereunder with respect to any of the foregoing so
transferred; but with respect to any Collateral or Proceeds not so transferred,
Secured Party shall retain all rights, powers, privileges and remedies herein
given.

      12. STATUTE OF LIMITATIONS. Until all Indebtedness shall have been paid in
full and all commitments by Secured Party to extend credit to Debtor have been
terminated, the power of sale or other disposition and all other rights, powers,
privileges and remedies granted to Secured Party hereunder shall continue to
exist and may be exercised by Secured Party at any time and from time to time
irrespective of the fact that the Indebtedness or any part thereof may have
become barred by any statute of limitations, or that the personal liability of
Debtor may have ceased, unless such liability shall have ceased due to the
payment in full of all Indebtedness secured hereunder.

      13. MISCELLANEOUS. [Intentionally omitted].

      14. NOTICES. All notices, requests and demands required under this
Agreement must be in writing, addressed to Secured Party at the address
specified in any other loan documents entered into between Debtor and Secured
Party and to Debtor at the address of its chief executive office (or principal
residence, if applicable) specified below or to such other address as any party
may designate by written notice to each other party, and shall be deemed to have
been given or made as follows: (a) if personally delivered, upon delivery; (b)
if sent by mail, upon the earlier of the date of receipt or three (3) days after
deposit in the U.S. mail, first class and postage prepaid; and (c) if sent by
telecopy, upon receipt.

      15. COSTS, EXPENSES AND ATTORNEYS' FEES. Debtor shall pay to Secured Party
immediately upon demand the full amount of all payments, advances, charges,
costs and expenses, including reasonable attorneys' fees (to include outside
counsel fees and all allocated

                                       6
<PAGE>

costs of Secured Party's in-house counsel), expended or incurred by Secured
Party in exercising any right, power, privilege or remedy conferred by this
Agreement or in the enforcement thereof, whether incurred at the trial or
appellate level, in an arbitration proceeding or otherwise, and including any of
the foregoing incurred in connection with any bankruptcy proceeding (including
without limitation, any adversary proceeding, contested matter or motion brought
by Secured Party or any other person) relating to Debtor or in any way affecting
any of the Collateral or Secured Party's ability to exercise any of its rights
or remedies with respect thereto. All of the foregoing shall be paid by Debtor
with interest from the date of demand until paid in full at a rate per annum
equal to twelve percent (12%), but not in excess of the maximum rate permitted
under applicable Minnesota law.

      16. SUCCESSORS; ASSIGNS; AMENDMENT. This Agreement shall be binding upon
and inure to the benefit of the heirs, executors, administrators, legal
representatives, successors and assigns of the parties, and may be amended or
modified only in writing signed by Secured Party and Debtor.

      17. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall
be held to be prohibited by or invalid under applicable law, such provision
shall be ineffective only to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or any remaining provisions
of this Agreement.

      18. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Minnesota.

         [Remainder of Page Intentionally Blank; Signature Page Follows]

                                       7
<PAGE>

         IN WITNESS WHEREOF, this Agreement has been duly executed as of
December 15, 2005.

                                        LAKES POKER TOUR, LLC

                                           /s/ Timothy Cope
                                           --------------------------------
                                           Timothy Cope
                                           Its Chief Financial Officer

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