MADISON, Wis. -- The state Supreme Court has ruled that Gov. Jim Doyle exceeded his authority in signing a gaming compact with an American Indian tribe that allowed Las Vegas-style games such as craps and roulette.

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Gaming Compacts: $200 Million & 35,000 Jobs In Jeopardy

But Doyle said the decision has no bearing on the Forest County Potawatomi's ability to offer those games.

He said Indian gaming is a matter of federal law, not state law.

The court's 4-3 decision wipes out key provisions of the new compact the governor signed with the Forest County Potawatomi last year, nullifying a $34 million payment the tribe was scheduled to make to the state next month.

Chief Justice Shirley Abrahamson wrote in her dissent that the decision threatens more than $200 million the tribes are expected to pay the state during this budget. That'll blow a hole in the budget, which is already facing a shortfall.

Abrahamson also said the ruling threatens 35,000 jobs associated with those gaming operations.

Republican lawmakers filed the lawsuit.

All 11 tribes operating 17 casinos signed compacts similar to the one Doyle negotiated with the Potawatomi.

Doyle insists the matter would ultimately be decided in federal court.

He anticipates the tribe would file a challenge in federal court. But he was unsure whether the state would participate in that lawsuit or file an appeal of its own.

Reaction

Jeff Crawford, attorney general for the Forest County Potawatomi, issued this statement Thursday morning:

"The winners are the Alabama Dog Track owners and the state of Illinois; the real losers are the taxpayers who face a $207 million deficit and the tens of thousands of families whose jobs are at stake. This 90-page decision raises as many questions as it answers, and we will look at every option to defend our rights, including federal court."

Milwaukee County Executive Scott Walker released this response:

"We are pleased the Supreme Court's decision does not negate the terms of the last compact negotiated by former Governor Tommy G. Thompson. This protects the millions of dollars directed to Milwaukee County and the City of Milwaukee each year through the terms of that compact. We are concerned, however, that state government may seek to fill the $207 million hole in the biennial budget by passing even more cuts on to local governments. Now that we've heard from the state judicial branch, we'll keep a close watch the actions of the executive and legislative branches."