She joins John Travolta, who will play John Gotti Sr. and Joe Pesci, who will play a deputy of Dapper Don.
The younger Gotti insists he left the mob life in the 1990s, but has been unsuccessfully tried four times on racketeering charges.
Lohan tells The Associated Press the film is "a great story to be told."
She says she's attracted to the project because it veers from the shoot-'em-up style of other mob films.
She has accepted a role in another Fiore Films project, "Mob Street."