Lobotomy was acquired by Crave Entertainment in 1998 and renamed Lobotomy Studios. After the acquisition they began working on Caesar's Palace, gambling game, for N64. However after a year being in development, and slated for release August 2nd of 1999, Caesar's Palace development was moved to Crave's Los Angeles headquaters, then postponed and eventually cancelled. Lobotomy Studios was shut down and employees were let go or given the option to be relocated to another position at Crave.

Another reason why Caesars Palace wasn't released could also be that Craves license ran out, judging by Interplay's "Caesars Palace 2000" which was released a little under a year after the N64 version by Lobotomy/Crave was supposed to be out.