Elon Musk’s pro-Donald Trump America PAC can continue to dole out $1 million daily for its voter giveaway program, a judge in Pennsylvania ruled on Monday.
Philadelphia Court of Common Pleas Judge Angelo Foglietta issued the ruling.
Philadelphia District Attorney Larry Krasner argued the program, which has doled out $16 million so far, was an illegal lottery scheme and requested an injunction.
Musk formally unveiled the $1 million giveaway to registered voters on his social media platform X, formerly Twitter, and on America PAC’s website, on Oct. 19. To be entered into the sweepstakes, people must be registered voters in Pennsylvania, Georgia, Nevada, Arizona, Michigan, Wisconsin or North Carolina — all swing states — and sign a pledge stating that they agree to be a “spokesperson for America PAC” and endorse its statement that the “First and Second Amendments guarantee freedom of speech and the right to bear arms.”
The Justice Department sent a letter to America PAC about the program on Oct. 23, informing Musk it may run afoul of federal voting and election laws.
Philadelphia District Attorney Larry Krasner then sued Musk and America PAC on Oct. 28, at which time at least $4 million had already been doled out. Krasner argued that the sweepstakes illegally incentivized voters and only the state of Pennsylvania can operate lottery programs within its borders.
Pennsylvania code states that all lottery proceeds must be used “for the benefit of those 65 years of age and older,” the district attorney’s office said. The manner in which prizes are claimed, how funds from lotteries are used and even how those funds are disclosed are all controlled by state law and state operators.
Before Monday’s ruling by Foglietta to let the giveaway continue, Musk successfully managed to ensnare the case with brief delays. He attempted to move the case into federal court, kicking off a delay of at least a day as his attorneys argued that Krasner was engaged in a publicity stunt. Musk’s lawyers said the request for a transfer of jurisdictions was proper because the lawsuit involved constitutional and First Amendment issues that were specific to a “federal election.” A federal judge disagreed and ordered the case back to state court.
But with so few days to go until Election Day, the impact of Krasner’s lawsuit was effectively moot.
When Musk first announced the program, he said that the $1 million would be awarded randomly. In the suit, Krasner pointed out that recipients of the giveaways on Oct. 19 and Oct. 20 did not appear to be “chosen at random because both happened to live near the location of Musk’s pro-Trump rallies and both were in attendance at those rallies.”
According to Reuters, Musk’s lawyer Chris Gober told the judge on Monday that the $1 million wasn’t a “prize to be won” but rather an agreement to fulfill “contractual obligations to serve as a spokesperson for the PAC.” The money, he argued, was a salary people earned.
Gober suggested there was a difference between declaring recipients “randomly” and “by chance” and that doing the latter would make it a lottery.
“You just heard this guy say, ‘My boss, my client, called this random. We promised people that they were going to participate in a random process, but it’s a process where we pre-select people,’” John Summers, lead counsel for the commonwealth, said Monday at the hearing.
As of Sunday, $16 million has been allocated to voters who signed the petition, according to America PAC.
So far, four winners have been declared in Pennsylvania; three winners each were declared in North Carolina, Michigan and Wisconsin; and one person each received the $1 million in Arizona, Georgia and Nevada.
Before the hearing, America PAC’s website stated that another $1 million would be given out in Arizona on Monday, and another “earner” in Michigan would be declared on Election Day.
Musk did not appear in court on Monday.
Reuters reported that Krasner told Foglietta that while he would seek to impose financial penalties on Musk for the lottery, he would not be looking to recoup the awards already given out.
This is a developing story. Please check back for updates.