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KENOSHA, Wis. - The Federal Bureau of Indian Affairs has rejected an amendment to the state's gaming compact, which could pave the way for a new casino in Kenosha, according to the Forest County Potawatomi tribe.

The compact with Wisconsin tribes requires the state to refund compact payments to the state if the governor approves an off-reservation casino that reduces revenue at an existing casino. 

Some tribes, including the Potawatomi, argue that a casino proposal in Kenosha by the Menominee tribe would cut into their revenues, and the governor has expressed concern about the viability of the Kenosha proposal because of the possible payments.

The BIA decision Friday calls into question the compact measures, and at least for now, takes the state off the hook for those payments.

In a statement, the Forest County Potawatomi, who has been opposed to a casino proposal in Kenosha, said it was "unfortunate" that the BIA rejected the compact amendment and said the tribe would file a lawsuit in federal court to get it reinstated.

Gov. Scott Walker has until Feb. 19 to approve the casino plan in Kenosha, and has said he would likely take all of that time to make a decision.Feds reject state gaming compact amendment

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