The U.S. government has formally rejected the Menominee Nation's Kenosha, Wis., proposed casino project but the tribe vows to keep trying, officials say.

U.S. Interior Secretary Dirk Kempthorne, in refusing the project, said the proposed location was too far from the reservation and would lead to a further splintering of the tribe.

The Menominee tribe has a lawsuit pending against the government, contending the guidelines are an illegal attempt to quash off-reservation casinos.

A spokesman for the Kenosha casino effort said Wednesday the project will continue in spite of the denial, the Kenosha News reported.

"Kenosha should know that the Menominee are continuing to pursue this project aggressively," spokesman Evan Zeppos said.

The Menominee and its partner, the Mohegan Tribe of Connecticut, have been marketing the $1 billion project as a means to boost the Menominee, Wisconsin's largest and poorest tribe, and the Kenosha community.

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