INDIAN ISLAND (AP) – The Penobscot Nation is threatening to move ahead with slots on Indian Island despite Gov. John Baldacci’s veto of a bill would have allowed 100 slot machines.

Chief Kirk Francis said the tribe plans to sever ties with the state – and risk losing state funding – while making plans for an expansion of gaming.

The vetoed bill, which was scaled back from 400 to 100 slot machines, was offered in response to the Hollywood Slots facility in Bangor that was approved by state voters.

The tribe says it needs slot machines because its existing high-stakes bingo can’t compete with Hollywood Slots.

Francis said he has watched as the tribe’s economic fortunes have gone downhill. He said the tribe has received little help from the state.

“Do we have a real opportunity to grow our economy to better our tribal members quality of life, to protect and enhance our culture to protect our river, to protect our lands, do we really have that ability to do that under the current system? And in my opinion we don’t,” he said.

Maine’s attorney general says the 1980 land claims settlement gives the state unusual authority that trumps tribal claims of sovereignty.

Gov. John Baldacci, who opposes gambling, told the tribe that members should move forward with a statewide referendum on their slots proposal, said David Farmer, the governor’s chief of communications.

The governor understands there’s frustration but believes there’s no legal basis for the tribe to move forward with slots without state approval, Farmer said. “There’s a lot of bitterness and animosity,” he said. “We wish we could move beyond this.”

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