SEC Form 5
FORM 5 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

ANNUAL 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
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 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
  
 Form 3 Holdings Reported.
X
 Form 4 Transactions Reported.
1. Name and Address of Reporting Person*
DEEPHAVEN CAPITAL MANAGEMENT LLC
(Last) (First) (Middle)
130 CHESHIRE LANE
SUITE 102
(Street)
MINNETONKA MN 55305
(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)
Director X 10% Owner
Officer (give title below) Other (specify below)
3. Statement for Issuer's Fiscal Year Ended (Month/Day/Year)
12/31/2005
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 at end of Issuer's Fiscal Year (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Amount (A) or (D) Price
Common Stock 06/15/2005 P4 2,200 A $15.0214 3,497,200 I see footnote(1)
Common Stock 06/16/2005 P4 4,200 A $15.4879 3,497,200 I see footnote(1)
Common Stock 06/16/2005 P4 2,500 A $15.84 3,497,200 I see footnote(1)
Common Stock 06/20/2005 P4 66,384 A $16.7355 3,497,200 I see footnote(1)
Common Stock 06/21/2005 P4 12,700 A $16.5638 3,497,200 I see footnote(1)
Common Stock 06/22/2005 P4 29,600 A $16.2185 3,497,200 I see footnote(1)
Common Stock 06/23/2005 P4 22,444 A $15.7196 3,497,200 I see footnote(1)
Common Stock 06/24/2005 P4 18,150 A $159,062 34,972,000 I see footnote(1)
Common Stock 06/27/2005 P4 20,465 A $15.9361 3,497,200 I see footnote(1)
Common Stock 06/28/2005 P4 28,609 A $16.3136 3,497,200 I see footnote(1)
Common Stock 06/28/2005 S4 100 D $16.4007 3,497,200 I see footnote(1)
Common Stock 06/26/2005 P4 23,700 A $16.7358 3,497,200 I see footnote(1)
Common Stock 06/30/2005 P4 73,521 A $15.4428 3,497,200 I see footnote(1)
Common Stock 07/01/2005 P4 250,000 A $14.982 3,497,200 I see footnote(1)
Common Stock 07/01/2005 S4 250,100 D $14.9821 3,497,200 I see footnote(1)
Common Stock 07/01/2005 P4 5,200 A $15.0192 3,497,200 I see footnote(1)
Common Stock 07/05/2005 P4 2,300 A $14.8961 3,497,200 I see footnote(1)
Common Stock 07/05/2005 S4 100,200 D $14.9699 3,497,200 I see footnote(1)
Common Stock 07/05/2005 P4 100,000 A $14.97 3,497,200 I see footnote(1)
Common Stock 07/06/2005 P4 1,300 A $14.7992 3,497,200 I see footnote(1)
Common Stock 07/06/2005 P4 150,000 A $14.9367 3,497,200 I see footnote(1)
Common Stock 07/06/2005 S4 150,000 D $14.9367 3,497,200 I see footnote(1)
Common Stock 07/07/2005 P4 100,000 A $14.76 3,497,200 I see footnote(1)
Common Stock 07/07/2005 S4 100,000 D $14.76 3,497,200 I see footnote(1)
Common Stock 07/07/2005 P4 2,936 A $14.7999 3,497,200 I see footnote(1)
Common Stock 07/08/2005 S4 7,500 D $17.5533 3,497,200 I see footnote(1)
Common Stock 07/08/2005 P4 27,200 A $17.6834 3,497,200 I see footnote(1)
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)
(A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Explanation of Responses:
1. Deephaven Capital Management LLC ("Deephaven") is the investment manager to one or more private funds and/or separately managed accounts (collectively, the "Funds"). As investment manager to the Funds, Deephaven has full voting and dispositive power with respect to the 3,497,200 shares of the common stock of the Issuer ("Common Stock") held by the Funds. Deephaven disclaims beneficial ownership of such shares of Common Stock except to the extent of its pecuniary interest in such shares.
Thomas Wagner, Chief Compliance Officer 02/14/2006
** 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).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
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