Judge Rejects Elon Musk’s Bid to Move $1M Giveaway Lawsuit to Federal Court Amid Allegations of Illegal Lottery

A judge on Friday rejected Elon Musk’s attempt to transfer to federal court a lawsuit challenging the legality of his $1 million daily giveaways to registered voters in swing states, siding with Philadelphia District Attorney Larry Krasner. The Philadelphia DA claims Musk’s America PAC sweepstakes constitute an “illegal lottery” under Pennsylvania law, while Musk argues it supports free speech and voter engagement.

The ruling, issued by U.S. District Judge Gerald Pappert, returns the case to state court and allows Krasner’s efforts to halt the giveaways to proceed. Musk’s attorneys initially delayed a Thursday state hearing by requesting the case be moved, citing federal election implications and diversity jurisdiction. However, Judge Pappert found the lawsuit centered on state law issues, dismissing the arguments for federal jurisdiction.

America PAC, a pro-Trump super PAC, launched the sweepstakes in October, limiting entries to registered voters in swing states, including Pennsylvania, who support the PAC’s petition on free speech and gun rights. So far, 14 recipients have received $1 million each, though Musk’s legal team claims the payments are for acting as PAC spokespeople, not as incentives to vote.

The lawsuit comes amid heightened scrutiny from the DOJ, which reportedly cautioned the PAC about potential legal violations for offering financial incentives tied to voter registration. Musk, who publicly endorsed Trump in July, has taken an active role in the campaign’s swing state outreach, hosting events in Pennsylvania and making America PAC a central part of his involvement.