An appellate court has dealt a major blow to the planned $4 billion casino and entertainment resort at the Nassau Coliseum site.

The court ruled late Wednesday in favor of Hofstra University, upholding a previous Supreme Court decision to annul Nassau County’s lease agreement with casino operator Las Vegas Sands.

The Supreme Court judge ruled Nassau County violated laws when the lease agreement was made, by failing to hold proper public hearings and conduct an environmental review.

The decision is the latest in an ongoing legal battle between Nassau County and Hofstra University over the planned casino.

Hofstra wrote in a statement, “Nassau County should now go back and conduct proper public hearings consistent with state law so that the public can be heard and participate in the decision...”

Nassau County Executive Bruce Blakeman remains optimistic about the proposal, which he has previously said would bring more than $100 million in annual revenue for local communities.

In response to the court’s decision, Blakeman wrote, “We will continue to move forward and not be deterred by minor distractions as we have the best application of any other area. We are confident that the Licensing board will view the sands application favorably.”