The developers of a planned Foxwoods casino for the New Bedford waterfront are backing out of the competition for the state's final resort casino license.

In a letter to the Massachusetts Gaming sent Wednesday, KG Urban Enterprises executive Barry Gosin said the New York-based firm is withdrawing from the casino competition because it has been unable to pull together financing for the proposed $650 million hotel, casino and conference center project.

New Bedford Mayor Jon Mitchell, in a statement, called the news an "extreme disappointment and a great shock."

It comes after gambling regulators granted the developers additional time to finalize its finances and city voters approved the project last month. One project remains in the running for the license: Mass Gaming and Entertainment's plan for the Brockton Fairgrounds.