Lakes Entertainment gets $25 million to cede rights on casinos in development

Lakes Entertainment cashes in casino rights

MINNEAPOLIS — Lakes Entertainment will get $25 million from Penn National Gaming Inc. for its rights, titles and interest in several casino projects that are in development, the casino operator said Wednesday.

The companies entered into an agreement in October in which Lakes would get up to a 10 percent stake in potential casinos in return for picking up some of the costs of building them.

The two Ohio casinos are to be built in Columbus and Toledo.

Lakes has already paid about $1.9 million under the agreement. Ending the deal does not affect Lake’s investment with Rock Ohio Ventures LLC and casino projects in Cincinnati and Cleveland.

“Although we believe the Toledo and Columbus casinos will be very successful, receiving $25 million now is a good return on our investment with Penn,” said Lakes CEO Lyle Berman.

(This version CORRECTS fourth graph to show that $1.9 million has been paid, not $19 million).)