UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 26, 2007

Lakes Entertainment, Inc.

(Exact name of registrant as specified in its charter)

Minnesota	0-24993	41-1913991
(State or other jurisdiction of	(Commission File Number)	(IRS Employer
incorporation)		Identification No.)

130 Cheshire Lane, Suite 101, Minnetonka, Minnesota	55305
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (952) 449-9092

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers; Compensatory Arrangement of Certain Officers.

(e) On February 26, 2007, the Board of Directors (“Board”) of Lakes Entertainment, Inc. (“Lakes”) authorized the payment in cash on or before March 15, 2007 of the following bonus amounts for services rendered by Lakes’ named executive officers during Lakes’ fiscal year ended December 31, 2006:

Named Executive Officer	Bonus Amount ($)
Lyle Berman	200,000
Timothy J. Cope	140,000
Mark Sicilia	80,000
Richard Bienepfl	45,000
Robert Wyre	50,000

Also on February 26, 2007, the Board increased the annualized base salary of Mr. Bienepfl from $225,000 to $250,000. Mr. Bienepfl’s salary increase became effective as of February 26, 2007.

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	LAKES ENTERTAINMENT, INC.
	(Registrant)
Date: March 2, 2007	/s/Timothy J. Cope
	Name: Timothy J. Cope
	Title: President and Chief Financial Officer

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