Casino developer and operator Lakes Entertainment reported a first-half loss of $778,000 on revenue of $11.8 million, down from a $3.8 million profit on revenue of $14.3 million in the first half of 2009.

Minneapolis-based Lakes operates Red Hawk Casino in Shingle Springs for the Shingle Springs Band of Miwok and Four Winds Casino Resort for the Pokagon Band of Potawatomi in Michigan.

“A significant portion of the decline in second quarter revenue related to our fees from the management of the Four Winds Casino Resort. The decline was due in part to an unusually low table games hold percentage, attributed to one guest that occurred during the first part of the second quarter. However, overall, the property continues to perform well,” said Lyle Berman, chief executive of Lakes, in a news release. “The Red Hawk Casino continues to face challenges in its market due to the harsh economic conditions in California.”

In the second quarter, Lakes earned $3.9 million on revenue of $4.8 million, up from a $2.8 million profit on revenue of $7.1 million the year earlier period.