Gov. Tom Corbett is ending his pursuit of the British national lottery operator to run the Pennsylvania Lottery in a privatization deal promising $34 billion in profits over 20 years.
Corbett's announcement Monday came nearly a year after Attorney General Kathleen Kane rejected the Camelot Global Services contract as illegal.
In the meantime, his administration couldn't persuade lawmakers to make such a contract legal.
Corbett isn't ruling out rebidding a lottery management contract in the future. But spokesman Jay Pagni says it makes sense to move on because Pennsylvania's political, legislative and competitive landscape has changed since Camelot submitted its bid.
Auditor General Eugene DePasquale applauded the decision, and questioned whether a private manager would've exceeded the performance of current lottery management.
The Pennsylvania Lottery is among the nation's largest.