In 2008, Lee was drafted by the Republican Party in Delaware to be their Gubernatorial candidate, over his announced opponent, Michael D. Protack. During the 2008 convention for the Delaware Republican Party, Lee received over 80% of the delegate votes in the draft, despite not being present. Lee filed his campaign paperwork on May 9 and announced he will make the run for governor. Along with Charlie Copeland, the Lieutenant Governor nominee, Bill Lee campaigned across the state. He lost in a landslide to democratic state Treasurer Jack Markell.