MONTICELLO - A proposed Mohawk casino in the Catskills received environmental approval from federal officials, bringing the long delayed $600 million project a step closer to reality, tribal representatives said Friday.

The Interior Department approved an environmental review of the St. Regis Mohawk Indian tribe's project, said tribal spokeswoman Leslie Logan. That means the agency found the proposed casino on 30 acres next to Monticello Gaming and Raceway in Sullivan County would not have a significant environmental impact.

“It's a terrific Christmas gift for the tribe,” Logan said. “That's how we're feeling.”

The Mohawks, whose reservation straddles the U.S.-Canadian border, are among a number of groups that have been trying to build a casino in the Borscht Belt for the past decade. Proponents say casino gambling will bring back tourists to an area where big old hotels sit boarded up. Rep. Maurice Hinchey, D-Hurley, said Friday the casino would bring thousands of construction jobs and then employ thousands more.

While the agency's environmental approval clears a major hurdle, construction cannot begin until the governor signs off on the review and the Interior Department puts the land into trust for the Mohawks. Also, the state must amend the gambling compact that allows the Mohawks to operate a casino in northern New York to include the Catskills facility.

The harness racing track is owned by Empire Resorts, which would build the new casino. The casino would offer blackjack, roulette, craps and traditional slot machines.

Empire spokesman Charles Degliomini said construction could begin within the year at the site 75 miles north of New York City.

Calls to the Interior Department and the Pataki administration were not returned Friday.