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.
Get Our Daily New York Newsletter
Thank you for signing up!
Would you like to sign up for additional newsletters?
Thank you for signing up for additional newsletters.