Tesla CEO and SpaceX founder Elon Musk has been ordered by a federal judge to stand trial in a lawsuit accusing him of orchestrating an illegal $1 million-a-day election lottery during Donald Trump’s 2024 presidential campaign.
The case raises the prospect of significant legal and financial repercussions for the billionaire if he is found liable.
The lawsuit, filed on Election Day, November 5, 2024, by Arizona resident Jacqueline McAferty, claims Musk and his political committee, America PAC, promised voters in several battleground states a daily chance to win $1 million in exchange for signing a petition to “support the U.S. Constitution.”
However, McAferty alleges that no participants ever received winnings, and instead voters were required to provide personal information such as names, addresses, emails, and phone numbers.
U.S. District Judge Robert Pitman, sitting in Austin, Texas, ruled that McAferty’s claims were plausible, rejecting Musk’s attempts to dismiss the case.
The judge pointed to statements suggesting that participants could “win” the $1 million, despite Musk’s argument that the program was not a lottery but an initiative to recruit spokespeople for America PAC.
Possible Legal Exposure for Musk
If the court ultimately rules against Musk, the consequences could be severe. Running an illegal lottery or fraudulent sweepstakes tied to a federal election could expose him to:
Civil liability: Musk may face class action damages for defrauded participants, potentially amounting to millions of dollars beyond the alleged $1 million-a-day promise.
- Election law violations: Depending on the findings, Musk could face penalties for interfering with federal elections through deceptive inducements. Violations of federal election law carry fines and, in some cases, potential criminal liability.
- Data misuse claims: With participants alleging they were compelled to hand over sensitive personal information, the case could broaden to include privacy and consumer protection claims, leading to statutory damages for misuse of voter data.
Legal experts note that if Musk is deemed culpable, the Federal Election Commission (FEC) or even the Department of Justice could pursue further actions, including hefty fines or criminal referrals, particularly if the scheme is found to have materially impacted the 2024 election outcome.
Broader Implications
The case—McAferty v. Musk et al., No. 24-01346, U.S. District Court, Western District of Texas—highlights the risks when billionaires use unconventional methods to influence elections.
While Musk maintains that participants suffered no harm, Judge Pitman emphasized that a political data brokerage expert may testify on the value of the personal information collected from voters, suggesting the impact could be more far-reaching than Musk has admitted.
The lawsuit is still in its early stages, but its potential to combine election law, fraud, and data privacy issues makes it one of the most closely watched legal battles involving Musk in recent years.
