A proposal by the St. Regis Mohawk Indian tribe to operate a new casino near Monticello Raceway, a Standardbred track located in the Catskill Mountains, was approved by federal officials on Thursday.

The approval, which is still subject to state approval, comes after three years of review and has been opposed by casino owners in Atlantic City, New Jersey. The new casino would be built approximately 75 miles from New York City, a prime customer-base for Atlantic City casinos, on 30 acres of land at the racetrack site.

A spokesman for New York Governor George Pataki indicated he would approve the casino. Pataki had not seen the proposal, "but the governor has said generally he is supportive of casinos in traditional resort areas, like the Catskills," spokesman Michael McKeon told the Associated Press on Thursday.