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The stories that matter on money and politics in the race for the White House
Philadelphia’s district attorney on Monday sued Elon Musk and his political action committee, alleging that a $1mn-a-day giveaway to registered voters in swing states who sign a petition amounted to an “illegal lottery scheme”.
In the civil complaint, Larry Krasner, the Democratic district attorney in Pennsylvania’s largest city, said the scheme violated Pennsylvania’s laws on lotteries and consumer protection. It “must be stopped, immediately” ahead of the US presidential election on November 5 “because America Pac and Musk hatched their illegal lottery scheme to influence voters in that election”, according to the complaint.
Musk, the world’s richest man, has become an ardent supporter of Republican presidential candidate Donald Trump. He said he would give away a daily $1mn prize to a registered voter in a swing state who had signed a petition backing constitutional protections for free speech and the right to bear arms.
The political action committee offers registered voters in Pennsylvania — which has become one of the most fiercely contested battlegrounds between Trump and his Democratic rival Kamala Harris — $100 for providing their personal data and signing the petition, as well as $100 for each registered voter in the state they refer to sign it. That is more than the Pac is giving away in other swing states, according to the complaint.
Musk’s America Pac has awarded nine prizes in Pennsylvania, North Carolina, Michigan, Wisconsin, Nevada and Arizona. The Pac claims to have received more than 280,000 signatures on its petition in Pennsylvania alone, according to the complaint.
But the complaint alleged that the act of giving up personal information and signing the petition in exchange for a chance to win $1mn was clearly a “lottery” — and under Pennsylvania law, lotteries must be regulated by the state.
Musk and America Pac did not immediately respond to a request for comment.
The lawsuit comes after the Department of Justice in recent days warned America Pac that the $1mn prizes may be flouting federal law, which bars paying individuals to register to vote.
When asked by reporters on Monday about Musk’s giveaways, US President Joe Biden called them “totally inappropriate.”
Musk has become one of Trump’s biggest backers and a vocal cheerleader, appearing alongside him at rallies, including at New York’s Madison Square Garden at the weekend, and pouring millions of dollars into supporting the ex-president.
Musk gave nearly $75mn to America Pac during the third quarter, according to a federal filing. The group has spent more than $133mn, according to the independent non-profit OpenSecrets.
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