A Pennsylvania state judge on Monday allowed Elon Musk's $1-million US-a-day offer to voters in swing states to go ahead, after a surprise day of testimony in which the billionaire's aide admitted his political party picked the winners of the contest.
With one day to go before the hotly contested US presidential election between Vice President Kamala Harris and former president Donald Trump, lawyers for Musk's pro-Trump America PAC are seeking to persuade Judge Angelo Foglietta that the contest was not an “illegal lottery,” as alleged by Philadelphia's chief prosecutor. .
Harris is leading the Democratic Alliance ticket as his party's choice for president, while Trump is running for the third consecutive election.
Attorneys for America PAC and its director, Chris Young, said the group released the funds based on who would be the best pro-Trump spokesman, despite the billionaire's assertion that the winners would be chosen randomly.
Tesla CEO Musk has given away $16 million to registered voters who qualified for the offer by signing his political petition. His group, America PAC, announced the Arizona winner on Monday and said the final winner, from Michigan, would be announced on election day Tuesday.
America PAC launched the contest on Oct. 19. Open to registered voters in seven key battleground states – Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin – who sign a petition pledging to support free speech and gun rights.
DA alleged that the competition is an illegal lottery
Philadelphia District Attorney Larry Krasner, a Democrat, on Oct. 28 sued to block the contest in Pennsylvania, saying the payouts were like an illegal lottery with ill-defined rules. Krasner said in court that he will also seek financial penalties.
Pennsylvania Democratic Gov. Josh Shapiro is among those calling for an investigation of Elon Musk, after the billionaire promised at a pro-Trump rally this weekend that he would donate $1 million each day until the November 5 US election.
Foglietta rejected Krasner's bid in a brief letter and said he would present his opinion later.
Musk's attorney Andy Taylor accused Krasner's office of trying to suppress the rights of Pennsylvanians by preventing them from signing the petition.
“They're trying to prevent the citizens of Pennsylvania from signing away free speech and the right to bear arms,” Taylor said during the closing argument.
Musk has been a staunch Trump supporter this year and has promoted the former president on his social media platform X. So far he has given nearly $120 million to America PAC to boost its voter mobilization and registration efforts, according to federal disclosures.
Pennsylvania's 19 electoral votes will be crucial in determining which candidate will win the 270 votes needed to declare the winner.
Lawyers argue that the gift is illegal
Trying to convince Foglietta that the offer was not an illegal lottery, Musk's lawyers said that it was not a prize, but rather a compensation for those selected to serve as spokespeople for America PAC's pro-Trump agenda.
Young, who is the director of America PAC, testified that he selected the winners from a pool of people who appeared in the group's videos and allowed him to use their photos after reviewing social media and meeting with them outside of event venues.
John Summers, an attorney for Krasner's office, said that admitting that the giveaway was not random made the lottery not only illegal but fraudulent.
“If their story is true,” Summers said in his closing remarks, “it's one of the biggest scams of the last 50 years.”
Musk's words were shown in court
Summers showed the court a clip of Musk at a Trump rally on October 19, saying America PAC would randomly award $1 million to people who signed a petition. In the video, Musk said “all we ask” is that the winners serve as spokespeople for America PAC.
Young said he was surprised to hear Musk describe the offer as unplanned at the meeting. He also admitted that the winners had signed non-disclosure agreements preventing them from discussing the terms of the contracts.
The gift falls into a gray area of election law, and legal experts are divided on whether Musk may have violated federal rules against paying people to register to vote.
The US Department of Justice has warned America PAC that this provision may violate federal law, according to media reports, but federal prosecutors have not taken any civil action.
Trump's campaign has relied heavily on outside groups to sway voters, meaning the super PAC founded by Musk, the world's richest man, is playing a big role in what is expected to be a close election.
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