SEC Form 4

FORM 4		UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940	OMB APPROVAL OMB Number: 3235-0287 Estimated average burden hours per response: 0.5
	Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person* SELL NEIL I (Last) (First) (Middle) MASLON LAW FIRM 90 SOUTH 7TH STREET, SUITE 3300 (Street) MINNEAPOLIS MN 55402 (City) (State) (Zip)	2. Issuer Name and Ticker or Trading Symbol LAKES ENTERTAINMENT INC [ LACO ]	5. Relationship of Reporting Person(s) to Issuer (Check all applicable) X Director 10% Owner Officer (give title below) Other (specify below)
	3. Date of Earliest Transaction (Month/Day/Year) 09/22/2009
	4. If Amendment, Date of Original Filed (Month/Day/Year)	6. Individual or Joint/Group Filing (Check Applicable Line) X Form filed by One Reporting Person Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Options(1)	$7.5361	09/22/2009		D			20,000	(2)	01/01/2014	Common Stock, $.01 par value	20,000	(3)	0	D
Stock Options(1)	$16.8387	09/22/2009		D			10,000	(2)	02/15/2015	Common Stock, $.01 par value	10,000	(4)	0	D
Stock Options(1)	$4.24	09/22/2009		D			5,000	(5)	03/13/2018	Common Stock, $.01 par value	5,000	(6)	0	D
Stock Options(1)	$3.4	09/22/2009		A		11,740		(7)	09/22/2019	Common Stock, $.01 par value	11,740	(3)	11,740	D
Stock Options(1)	$3.4	09/22/2009		A		5,122		(8)	09/22/2019	Common Stock, $.01 par value	5,122	(4)	5,122	D
Stock Options(1)	$3.4	09/22/2009		A		4,667		(9)	09/22/2019	Common Stock, $.01 par value	4,667	(6)	4,667	D

Explanation of Responses:

1. Pursuant to Rule 16b-3 (right to buy).

2. Fully exercisable.

3. On September 22, 2009, the issuer canceled, pursuant to the issuer's option exchange program, an option for 20,000 shares of Lakes Entertainment, Inc. common stock granted to the reporting person on January 1, 2004. In exchange, the reporting person received a replacement option, for 11,740 shares, having an exercise price of $3.40 a share.

4. On September 22, 2009, the issuer canceled, pursuant to the issuer's option exchange program, an option for 10,000 shares of Lakes Entertainment, Inc. common stock granted to the reporting person on February 15, 2005. In exchange, the reporting person received a replacement option, for 5,122 shares, having an exercise price of $3.40 a share.

5. The option provided for vesting in equal installments of 1,250 shares each on 3/13/09, 3/13/10, 03/13/11 and 3/13/12.

6. On September 22, 2009, the issuer canceled, pursuant to the issuer's option exchange program, an option for 5,000 shares of Lakes Entertainment, Inc. common stock granted to the reporting person on March 13, 2008. In exchange, the reporting person received a replacement option, for 4,667 shares, having an exercise price of $3.40 a share.

7. The option vests in two equal annual installments beginning September 22, 2010.

8. The option vests in three equal annual installments beginning September 22, 2010.

9. The option vests in five equal annual installments beginning on September 22, 2010.

Remarks:

	/s/ Neil Sell	09/24/2009
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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