On November 12, 2024, the Court of Common Pleas of Philadelphia County (the “court”) released is decision holding that the promotional effort to award $1 million to persons who indicated their support for the U.S. Constitution did not constitute a lottery under Pennsylvania law.  This decision marks a rare instance in which a court has ruled upon whether the key elements of a “lottery” or similar gambling scheme were present in a consumer-facing promotional effort.  In this case the court held that the key elements of a lottery (prize, chance, and consideration) were not present.

Background

On October 19, 2024, the founder of America PAC (Mr. Elon Musk) stated at a Pennsylvania rally that he would award $1 million per day for the next two weeks to a registered voter who signed America PAC’s petition pledging support for the U.S. Constitution and the First and Second Amendments.  America PAC also announced this promotional program on the website X with a post that stated the PAC “will be randomly awarding one million dollars every day from now until election day, to registered Pennsylvania voters who sign America PAC’s petition, and a surprise member of the audience as the first winner.”  This post also included a video that stated the money would be awarded “randomly” to people who signed the petition and agreed to be a spokesperson for the petition.  Subsequent posts promoting the program mentioned signing the petition for a chance to win $1 million.Continue Reading Pennsylvania Court Finds Promotion Program During Presidential Campaign Not a Lottery