Six units on 69th Street will be seized "for a matter of weeks," the MTA said.
The Sweet Spot, set to open on 31st Street in February, includes a bar, lounge and restaurant.
Retired employees of Off-Track Betting could lose all health care benefits unless the state takes over the costs.
The Senate failed to pass a bill that would have saved the betting houses during an emergency session Tuesday.
The State Senate will reconvene Tuesday to vote on a rescue plan for the state betting house.
The New York City Off-Track Betting Corporation says it will shutter its doors if it does not obtain emergency funding.
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