MADISON, Wis. (AP) -

Gov. Scott Walker's administration has warned the Potawatomi tribe that it could lose nearly 2,000 slot machines if it succeeds in withholding its $25 million annual payment to the state.

The Forest County Potawatomi says it's withholding the payment because the state may end up owing the tribe money if Walker approves the Menominee tribe's proposed casino in Kenosha. The Potawatomi fear a Kenosha casino would significantly cut into their Milwaukee casino profits.

The Journal Sentinel says Walker's administration warned the tribe in a letter released Wednesday that if the Potawatomi win the payment dispute in court, the tribe's 2003 compact amendment would be voided and rules of the 1998 compact agreement would prevail.

That would limit the tribe to 1,000 electronic games, 2,000 less than it currently offers at its Milwaukee casino.