The Hudson Valley has been shut out of New York's casino expansion.

A panel selected Sullivan, Schenectady and Seneca counties as sites for casinos in upstate New York, deciding not to recommend a fourth.

The Gaming Facility Location Board's announcement Wednesday brings to an end a fierce competition among 16 developers and job-hungry communities for four casino licenses.

There were six applications under review in Orange County at spots in New Windsor, the Town of Newburgh, Montgomery, Woodbury, Tuxedo and Blooming Grove.

The board cited the Hudson Valley's proximity to New York City-area casinos as the main reason for developing elsewhere.

The Catskills/Hudson Valley region attracted the most competition, with nine developers vying for a license. The applicants included a mix of big names like Caesars, Genting, Mohegan Sun and Hard Rock along with local developers.

Voters last year authorized up to four casinos to be divided among three upstate regions: the Albany-Saratoga area, the Southern Tier-Finger Lakes region and the Catskills and mid-Hudson Valley.

The board's decision isn't the final step. Background checks and environmental reviews will be completed, and the licenses must be formally awarded by the state's Gaming Commission.