DULUTH, Minn. (AP) - A federal judge has dismissed Duluth's lawsuit over the Fond du Lac Band's proposal to use a downtown hotel for its casino operations.

The city is trying to keep the Carter Hotel from becoming part of the reservation. The hotel is next to the Fond-du-Luth Casino.

U.S. District Judge Susan Richard Nelson ruled last week that the city does not have to approve that move.

City Attorney Gunnar Johnson says the city is still studying the decision and considering its options.

Johnson said if the hotel becomes part of the reservation, the city loses out on taxes and the ability to control public nuisances on the site.

Fond du Lac Chairwoman Karen Diver said in a statement Tuesday that the band is pleased with the ruling.