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Billionaire Elon Musk's America PAC has received a warning from the US Justice Department over its $1 million daily giveaways to registered voters.

According to US media reports published Wednesday (Oct 23), the Justice Department said that the giveaways could potentially breach federal law.

The America PAC is a super PAC (political action committee) created by Elon Musk to support Donald Trump's 2024 presidential campaign.

Reports from CNN and 24sight News revealed that the Justice Department's warning letter to Musk's PAC highlights concerns that the whopping one million dollar giveaway may violate federal law, which prohibits offering money to encourage voter registration. 

What is the $1 million giveaway?
Musk, a vocal supporter of Donald Trump, launched the contest in Pennsylvania, one of seven critical "swing states".

Pennsylvania is likely to play a big role in determining who will win the upcoming US presidential election, Trump or Kamala Harris. 

The contest, which began last Saturday, offers $1 million daily to a randomly chosen registered voter in one of these states, leading up to the election on November 5.

To enter the contest, participants must be registered voters and sign a PAC petition in support of "free speech and the right to bear arms." 

Legal experts, such as Georgetown Law School professor Danielle Lang, have raised alarms that the contest may be subject to legal action. Speaking to AFP, Lang said, "It is illegal to give out money on the condition that recipients register as voters."

"As the terms of this 'contest' to win $1 million require the recipient to be a registered voter in one of seven swing states (or to register if they have not already), the offer violates federal law," she added.

Musk, the Tesla, and SpaceX CEO, has recently taken an increasingly visible role in Trump's campaign and has even donated $75 million to the America PAC.