Sen. Karen Tallian's decision leaves John Gregg as the sole Democrat still in the race for governor.
Ritz raised just $30,000 in the last six months and has about $112,000 cash on hand – less than she started the year with.
Former House Speaker John Gregg managed to out-fundraise the incumbent through June by a little more than $100,000.
Animosity over the Religious Freedom Restoration Act and the Pence administration’s support for the measure has split the state.
The Democratic candidate and former Indiana House Speaker, who also ran in 2012, announced the news Thursday.
Legislators prepare to wrap up the 2015 legislative session, and the DNR is seeing a decline in yearly deer harvests. Read more in today's headline roundup.
John Gregg said in February that he was considering a possible 2016 run for Indiana governor.
John Gregg, who Mike Pence defeated in 2012, is considering a second run for governor in 2016.
Is it safe to buy breast milk online, more on the Indy airport's solar energy project and claims the state board of education violated open door laws.
The former Indiana House speaker had planned on being the Democratic Party's gubernatorial nominee in the next election.