THOMPSON, N.Y. (AP) -- A development group that wanted to build a casino in the Catskills is dropping out, saying the possibility of a competing casino closer to New York City would make their proposal unsustainable.

Trading Cove and the Stockbridge-Munsee Community of Wisconsin say Thursday they will not bid for a gaming license in the Sullivan County town of Thompson. The developers say the possibility of a casino in neighboring Orange County would dilute the market.

The developer's statement echoed concerns in Sullivan County about casinos closer to the city siphoning business.

The exit leaves 18 development groups vying for four casino licenses that will be granted in three regions: the Albany-Saratoga area, the Southern Tier-Finger Lakes region and the Catskills and mid-Hudson River Valley.

A proposed casino on the Hudson River across from Albany has received approval from local officials.

The Rensselaer Common Council voted Wednesday in favor of a resolution supporting a casino proposed from Flaum Management and the Chickasaw Nation's Global Gaming Solutions. The developers revealed earlier this week that they had shifted their focus to a casino site in the city of Rensselaer from a site off the Thruway in neighboring Albany, which was unsuitable for the large-scale resort.

Applicants for the casino licenses must submit final proposals by June 30.