A second development group is dropping its proposal to build a casino in the Catskills, citing the possibility of a competing casino closer to New York City.

Foxwoods and Muss Development informed local officials Monday that they are dropping plans to build a casino in Liberty in Sullivan County. An advertisement to appear in local papers said the prospect of a casino in Orange County made it impossible to secure proper financing.

Earlier this month, Trading Cove and the Stockbridge-Munsee Community of Wisconsin said they would not bid for a license in the Sullivan County town of Thompson for similar reasons.

Applicants must submit proposals by June 30 for one of four licenses that will be granted in upstate New York.

There are still applications expected in the Catskills.

(AP)