The Justice Department has sent a letter to tech billionaire Elon Musk’s super PAC, America PAC, warning that its $1 million daily giveaway in battleground states may run afoul of federal law, a source familiar with the matter told NBC News.
The letter came from the department’s Public Integrity Section, the source said. That section handles election-related prosecutions and related cases.
The Justice Department declined to comment, and the super PAC’s treasurer did not immediately return a voicemail message requesting comment.
The letter, which was earlier reported by CNN, follows mounting pressure on state and federal authorities to investigate Musk’s lottery as a potential violation of election laws, including a ban on paying people to register to vote. On Monday, a group of ex-prosecutors and other former government officials sent a letter to the Justice Department requesting an investigation.
It’s unclear when the letter went out or what further action, if any, the DOJ might take.
Legal experts have told NBC News that they believe Musk’s contest falls into a legal gray area and could potentially violate election law, but not necessarily.
“I can see what people are saying when they argue this violates the law, but I don’t think it does,” said Matthew Sanderson, an election law expert who has worked with Republicans and is an NBC News consultant.
Federal law prohibits paying people to register to vote. The daily drawing by Musk’s America PAC has two requirements to enter, according to the contest website: be a registered voter in one of seven swing states and sign a petition supporting the First and Second Amendments.
The contest is open to those in Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin.
Musk announced the daily giveaway Saturday at a town hall event in Harrisburg, Pennsylvania, saying he would give away $1 million a day until Election Day.
Musk, the CEO of Tesla and SpaceX, is the world’s wealthiest person with a net worth of $240 billion, according to the Bloomberg Billionaires Index.