A federal judge ruled that a lawsuit against Elon Musk’s political action committee, America PAC, over its $1 million daily voter prize draw would be heard in Pennsylvania state court, rather than federal court.
The lawsuit, filed by Philadelphia District Attorney Larry Krasner, aimed to stop the sweepstakes, which offered prizes to registered voters. Despite Musk’s legal team arguing that federal court was the right venue due to the upcoming presidential election, U.S. District Judge Gerald Pappert ruled the case should be handled in Pennsylvania’s Court of Common Pleas. A hearing was set for November 4, right before the election.
Initially, Krasner’s lawsuit accused Musk’s America PAC of running an illegal lottery by collecting voter contact information in exchange for a chance to win the $1 million prize and a $47 incentive. The petition, which framed the offer as supporting the First and Second Amendments, was seen as targeting Trump supporters in key swing states. The suit also claimed the daily prize draw violated Pennsylvania’s consumer protection laws, arguing that the winners weren’t selected randomly as promised.
The U.S. Department of Justice had expressed concerns, suggesting the scheme could violate federal laws on voter registration. However, Krasner’s lawsuit was the first to officially challenge the sweepstakes in Pennsylvania.
Musk’s legal team defended the lottery, insisting it was open to all registered voters and aimed to boost voter turnout in swing states, regardless of political affiliation. Meanwhile, USA online casinos had started to notice a rise in political wagers, as platforms like Kalshi and Robinhood capitalized on the growing trend of election betting in the U.S.