LAS VEGAS--(BUSINESS WIRE)--April 7, 1998--Lady Luck Gaming Corp. (Nasdaq/NM:LUCK) Tuesday announced it has signed a letter of intent to sell substantially all the assets associated with its Lady Luck Biloxi casino including real property, the casino barge and other operating assets to Grand Casinos for payment of $15 million cash.

The company will retain gaming and computer equipment and certain real property which is not contiguous with its Lady Luck Biloxi site.

The agreement is subject to board approval and waiting periods, bondholders' consent, regulatory approval and the execution of definitive agreements. Accordingly, there can be no assurances that the transaction will be consummated.

Lady Luck Gaming develops, owns and operates casinos in Mississippi and Iowa. The company is also in the pre-development stages on projects in Missouri and Vancouver, British Columbia.