Governor Tom Corbett is returning the 50 million dollar down payment from a British firm looking to run the state lottery system.
Corbett's administration announcing the move after Attorney General Kathleen Kane determined the 20 year contract with Camelot Global Services to be illegal.
The Governor can appeal that decision but any process will be lengthy as attorneys try to determine the boundaries of allowing a foreign and private firm to run one of America's most profitable lottery programs.
The state will continue to hold a promissory note from the company should an agreement be reached.