Casino operator Penn National Gaming (PNG) has dropped its legal challenge of Pennsylvania’s decision to license mini-casino operations in the state.

In January, PNG launched a federal court challenge of Pennsylvania’s gambling expansion legislation, specifically the part that allowed the state to auction off up to 10 mini-casino Category 4 licenses.

On Monday, Penn Live reported that PNG filed a notice of withdrawal of its lawsuit with the US District Court on July 12. PNG spokesperson Eric Schippers explained that, while the company “continue to believe in the merits of our arguments,” the withdrawal was a “business decision” to allow the company to focus on its own mini-casino plans.

Pennsylvania imposed a 25-mile buffer zone around its 12 brick-and-mortar casinos in which the new mini-casinos couldn’t be built. The relative proximity of many casinos meant their buffer zones overlapped, which expanded their overall prohibited zone. Hollywood Casino’s geographic isolation meant that its buffer was limited to the 25-mile radius, something PNG felt put the casino at a unique disadvantage, given that most of Hollywood’s customers already came from beyond the 25-mile buffer.