Elon Musk is the richest man in the world. He has started a campaign through his America PAC to award a $1 million daily prize for registered voters from swing states.
The controversial action is seen by many as the latest effort to help Donald Trump, the former US president, reclaim his White House during the US presidential elections in 2024.
Musk announced his decision on October 20th via X, the platform he runs, which was formerly Twitter.
Musk’s introduction of this sweepstakes adds yet another plot to the already dramatic and unpredictable election in US history. Trump is facing Vice President Kamala Harris as the Democratic candidate.
This giveaway sparked immediate reaction, as Democrats pledged to investigate legal actions, and raised questions regarding whether it violates federal electoral laws.
What is Elon Musk’s Giveaway?
America PAC’s sweepstakes will reward a random swing state voter with a prize of $1,000,000 each day until Election Day, November 5.
Participants must be registered as voters, and they will also need to sign a letter promoting the freedom of speech and right to carry arms.
Musk has a social media audience of 202,000,000 on X. He uses his platform heavily to promote the sweepstakes as well as his political views.
The contest posts have attracted a lot of attention. There are millions and millions views.
The sweepstakes is unique in that it does not require participants to declare their allegiance.
The terms of the offer are aligned with Musk’s pro Trump stance but do not specify which candidate the participants must support.
Musk announced on October 17 a limited time offer for Pennsylvania residents and anyone who refers them to sign the petition. The offer was $100, up from $47.
The cash incentives has sparked more discussion, particularly among experts in election law.
Elon Musk’s $1 Million giveaway is legal.
Unresolved is the legality of Musk’s sweepstakes.
The federal law forbids paying individuals to register as voters, leading to concern that Musk’s America PAC may be treading a thin line.
The contest rewards the participants who sign a petition instead of registering explicitly to vote. However, this still poses legal questions because registration is required to receive the prize.
Sean Morales Doyle, the director of Brennan Center’s nonpartisan Voting Rights program, stated in a Bloomberg article that this offer could create a financial incentive linked to voter registration which may be problematic according to federal law. He said:
It is important to note that both the petition and sweepstakes offer financial incentives in exchange for registering.
What is the potential for a contest to violate electoral law?
Musk’s competition is a concern because it requires participants to show proof of their voter registration.
Adam Bonin is an attorney who practices in election law in Philadelphia. He noted that the situation could be in violation of election laws in some states.
Musk could face difficulties if, for example, Pennsylvania’s law prohibits the use of financial incentives to influence voters in favor of a candidate.
Nevertheless, laws differ from state to state, and some may not explicitly forbid such an action.
The federal law on this issue is very clear, even if state laws are not violated.
Adav Noti, Executive Director of the Campaign Legal Center and the executive director for the federal campaign, warns that both criminal and civil penalties could be imposed under federal law.
Noti said that it is against the law to distribute money with the condition of registering voters.
The Department of Justice could enforce the sweepstakes rules if Musk requires registration.
Musk could have found an opening?
Musk’s team is adroitly navigating an approach that emphasizes signing a document, and not registering as a voter, which may be the key to avoiding legal issues.
Kate Belinski of Ballard Spahr noted that Musk’s petitions and pledges to free speech could have been designed to avoid election law violations as long as payments were not tied directly to registration or voting.
The website of America PAC emphasizes the fact that those who receive the prize money could have registered years ago, indicating that payments were not intended to encourage registration.
Matthew Haverstick is a lawyer specializing in political law at Kleinbard LLC. He explained that “it’s illegal to pay money for registering to vote.” This is not the case. “It’s an opportunity for people to register to vote. That includes those already registered.”
Can Musk’s contest be a violation of sweepstakes laws?
Musk’s campaign also touches on state and federal sweepstakes laws.
Andrew Lustigman is a New York lawyer who specializes in sweepstakes laws. He noted that Musk’s promotion appears to not violate the regulations.
No purchase is required for a sweepstakes entry.
Musk’s contest is unique in that it does not require participants to pay any money.
Lustigman, however, downplayed the risk of requiring that participants be registered voters, or to refer other people to register.
He said, “It does not strike me as a burden that is significant.”
Legal experts caution that any contests offering incentives to voters based on their behavior could be subjected to regulatory review.
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