According to a top aide, Governor Tom Corbett's bid to privatize the lottery is still alive.
Sources said an agreement has been reached between the state and British firm Camelot Global Services to extend the firm's bid to run the Pennsylvania Lottery.
The original bid expired on Saturday after new Attorney General Kathleen Kane rejected the contract between the two, citing it unconstitutional.
The original deal between Corbett and Camelot was a 30-year contract that promised to bring in at least $3.5 billion in revenue for the state.
The governor does have the option to challenge Kane's decision in court.