SALEM, Ore. — Gov. Ted Kulongoski has approved a tribal casino in the scenic Columbia River Gorge over the objections of conservationists who say it will bring traffic jams and pollution.

Kulongoski is to sign an agreement today allowing the first tribal casino on nontribal land in Oregon, to be built in the financially struggling town of Cascade Locks.

It's a policy shift that could prompt the eight other tribes with casinos in Oregon to consider building some on nonreservation land closer to Portland.

Cascade Locks, about 40 miles east of Portland, is a quick freeway drive from the state's major metropolitan area, and a casino there likely would be a big moneymaker for the Confederated Tribes of Warm Springs. Tribal leaders estimate it would draw 3 million people a year.

The tribes would close their existing casino near the town of Warm Springs when the new one opens.

Len Bergstein, a spokesman for the tribes, said the negotiated agreement also calls for the tribes to give a portion of the casino's revenue to the state. He said details will be announced today.

Many residents in Cascade Locks say they are eager for the casino to come to the town of 1,000 for the jobs and tourists it could bring.

However, the day manager at the Charburger Restaurant in Cascade Locks said he's worried a casino will transform the town, which is known for its nearby waterfalls and hiking trails.

"I think it will bring in a different crowd to town," Rod Bennett said. "It will be more crowded, and there will be more crime."

The conservation group Friends of the Columbia Gorge said air and water quality in the area will be harmed by the traffic the proposed 500,000-square-foot casino would generate.

"We're disappointed the governor would break the state's current policy on gaming and allow the first off-reservation casino in the heart of the Columbia River Gorge," said Michael Lang, spokesman for the group.

The Cascade Locks casino likely would cut into the market for the Spirit Mountain Casino, the state's biggest Indian gaming center, which is in Grand Ronde, about 60 miles southwest of Portland.

A spokesman for the tribes that operate Spirit Mountain said yesterday that, in view of Kulongoski's move, his tribes will look into a location closer to Portland.

"If off-reservation casinos are going to be a reality, then we have a responsibility to our tribal citizens to look at other options," said Justin Martin, government-relations director for the Confederated Tribes of Grand Ronde.

Federal approval is required for the proposed Cascade Locks casino.

The federal Indian Gaming Regulatory Act confines tribal gambling to Indian lands, usually existing reservations. But the Interior Department can determine that an off-reservation casino is in a tribe's best interest and wouldn't harm the surrounding community. If the governor of the state where the casino is planned agrees, the casino can be built.

About 20 tribes nationwide have gotten permission for off-reservation casinos under these exceptions, according to the Bureau of Indian Affairs' Office of Indian Gaming Management.

If Kulongoski had denied permission to build in Cascade Locks, the tribes had said they were prepared to build a casino upstream in Hood River on tribal property.