According to a report by the New York Daily News, state Assembly Democrats removed MMA approval from the current budget bill. Recently the sport gained approval by the state Senate, but it still needed to clear several hurdles.

Governor David Paterson has been a supporter of the bill to legalize MMA in the state. In his mind, regulation of the sport could bring in a great deal of revenue for the state in the middle of the depression.

For the last few years, Madison Square Garden has been a target for the UFC. Rumors circulated that the promotion wished to promote a fight with locals like Matt Serra. However, the sport is still not legal. Before the advent of Las Vegas as a fighting city, Madison Square Garden was considered a mecca of boxing. It hosted some of the greatest fights in history including the first bout between Joe Frazier and Muhammad Ali.

Earlier this year the Senate passed bill S 2165. However, now that the issue has been removed from the budget there is virtually no chance that the sport will be legalized in New York this year.

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