Judge Pauses Lawsuit Against Elon Musk’s $1 Million Sweepstakes Amid Election Controversy

A federal judge has temporarily halted a lawsuit challenging Elon Musk’s controversial $1 million-per-day sweepstakes in key U.S. swing states, allowing the giveaways to continue during the final days before the November 5 election. This sweepstakes, organized by America PAC—a pro-Trump political action committee established by Musk—has sparked intense debate, with critics claiming it could unduly influence voter turnout and support for presidential candidate Donald Trump.

Sweepstakes Under Legal Scrutiny

The lawsuit, filed by Philadelphia District Attorney Larry Krasner, argues that the sweepstakes functions as an illegal lottery, violating consumer protection laws through deceptive or vague terms. Krasner claims Musk’s America PAC offers cash prizes in exchange for political commitments, compelling participants to register to vote and sign a petition endorsing the Constitution. The lawsuit alleges that this approach pressures voters to share personal information without adequate transparency on privacy protections.

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Federal vs. State Court Dispute

Musk’s legal team contends that the lawsuit’s main argument revolves around federal election interference, making it a federal matter rather than one for state courts. By pushing the case to federal court, Musk’s team has potentially bought time before the election, effectively slowing down the lawsuit’s progress. This strategic move places the case before a new judge, allowing Musk’s team to argue for a fresh perspective on whether America PAC’s activities actually interfere with federal election processes.

Privacy and Transparency Concerns

In addition to the “illegal lottery” allegation, Krasner’s office points to several incidents casting doubt on the sweepstakes’ fairness and transparency. Citing examples where winners allegedly lived near or attended Trump rallies, the lawsuit argues that the selection process may not be entirely random. The lack of clear rules and an unclear stance on data privacy also raise concerns about participants’ personal data being handled responsibly.

Elon Musk, who has pledged substantial support to Trump’s re-election efforts, has invested nearly $120 million in America PAC, according to federal records. This financial backing, combined with the sweepstakes’ direct engagement with swing-state voters, amplifies the influence of the initiative. As an outspoken Trump supporter, Musk’s contributions and involvement have made him a visible ally in Trump’s campaign. Trump has even promised to appoint Musk as head of a proposed government efficiency commission if elected, further highlighting the alliance between the two figures.

What’s Next for Elon Musk?

With the case now on hold as it awaits possible transfer to federal court, Musk’s America PAC can continue operating the sweepstakes for the time being. According to election law expert Derek Muller, this pause serves Musk’s interests by delaying any legal actions that might interfere with America PAC’s ongoing sweepstakes. Muller emphasized that this move effectively restarts the judicial process, allowing the case’s pace to slow down in a critical pre-election period.

As it stands, Elon Musk’s $1 million daily giveaways will continue, leaving the final judgment on their legality unresolved until after Election Day. This delay raises important questions about the impact of high-profile supporters and financial incentives on voter behavior in critical battleground states. The eventual federal or state court ruling will set a precedent for how election-related giveaways are regulated in future campaigns.