GETTYSBURG -- The first battle of Gettysburg, from July 1 to July 3, 1863, ended with a murderous barrage of cannon fire that killed thousands of American soldiers and changed the course of the Civil War.

The most recent battle of Gettysburg ended yesterday with raucous applause and a standing ovation at a small tavern that was once occupied by Confederate sharpshooters.

A few hours earlier, the Pennsylvania Gaming Control Board had denied a casino license to a group of investors who had planned to build a hotel, health spa and gambling complex a mile and a half from the center of the Adams County town.

"This was the power of the people," said Susan Star Paddock, head of No Casino Gettysburg, as she bounded into the 196-year-old Farnsworth House for the celebration. "The board realized that they could absolutely not license a casino on the most important battlefield in North America."

Dozens of activists mobbed the door when Ms. Paddock entered, throwing their arms around her. In the corner, a TV played the film "Gettysburg," starring Martin Sheen as Gen. Robert E. Lee.

David LeVan, owner of a local Harley-Davidson dealership and the lead developer, had hoped to erect a four-star, 225-room hotel with 3,000 slot machines on a spot that critics said was within "cannon range" of Gettysburg National Military Park, which draws about 2 million visitors a year.

David La Torre, a spokesman for the development group, said he was disappointed, both for Mr. LeVan and even more for Gettysburg area residents, who will now lose out on at least 2,000 new jobs.

The casino, he said, "would have created jobs and year-round tourism," as opposed to the seasonal tourism that is now focused solely on the battlefield and museum.

He wouldn't say if Mr. LeVan planned to appeal the commission's decision.

It was hard to find other casino advocates yesterday on the streets of Gettysburg and in the park itself. Those fighting against the plan have claimed overwhelming support, citing several polls and the collection of 65,000 signatures. More than 100 prominent historians opposed the casino.

"This is a battle that had to be fought," said Jim Campi, spokesman for the Civil War Preservation Trust.

Many historians recognize the battle of Gettysburg as the war's critical turning point, pushing the Confederate forces under Lee to go on the defensive after the failure of their bold attempt to defeat the Union Army on its own soil.

There were about 52,000 casualties, from both sides, during three days of fighting, making it the bloodiest battle in American history.

Yesterday, a woman whose brother died in service to his country stood in front of a bust of Abraham Lincoln in the park. Kristen Norwood Hullum and her husband have been on a three-week "freedom journey" that is taking them to some of the nation's most historic sites.

"I needed to know what he gave his life for," she said of her brother, Sgt. Byron Norwood, a 25-year-old Marine from Austin, Texas, who died at Fallujah in Iraq in 2004.

"I'm standing on a battlefield where thousands of men, just like my brother, gave their lives for the freedom that we have. I think it would cheapen our visit a little bit if we came into Gettysburg and saw a gigantic casino."