The governor of the U.S. western state of Arizona, Jan Brewer, has vetoed a controversial bill that would have protected businesses from lawsuits for refusing to serve gay customers.
Brewer, a Republican, said the law could have hurt the state's economy by driving away businesses. Phoenix is set to host the 2015 (NFL) Super Bowl.
She said it would have had unintended and negative consequences and could have divided the state in ways no one wants.
Arizona's Republican-led legislature passed the bill last week. Supporters say it gave business owners the right to express their religious freedom by refusing service to gay and transgender customers.
Opponents say the law would have opened the door to discrimination.
Several major businesses and the state's two Republican senators - John McCain and Jeff Flake - were among those who urged Brewer not to sign the bill.
Several Arizona legislators who voted in favor of the law later said they were sorry they did and also urged the governor to veto it.