Melbourne billionaire and tech entrepreneur Adrian Portelli is gearing up for a legal fight after being slapped with nine charges related to alleged unlawful lotteries. Portelli and his company Xclusive Tech Pty Ltd, which operates under the name LMCT+, intend to plead not guilty to all counts of assisting in the conduct of unlawful lotteries.
The charges stem from Portelli’s headline-grabbing giveaways of properties featured on the popular reality TV show The Block, as well as other lavish prizes. Through his “rewards club” subscription model, Portelli offered members the chance to win houses, cars, and hefty cash sums.
Subscription Lotteries Under Scrutiny
Portelli’s LMCT+ operates what’s known as a trade promotion lottery. Subscribers pay to join the rewards club and receive entries to win various prizes. However, South Australia’s Consumer and Business Services (CBS) launched an investigation into some of these giveaways, including properties from The Block, before filing a total of 19 charges against Portelli and Xclusive.
According to court documents, the alleged unlawful lotteries occurred between January 2023 and May 2024. Some of the major prizes on offer included:
- A property in Gisborne, Victoria from The Block or a $3 million cash alternative
- Two other The Block properties valued at around $2.9 million and an undisclosed amount, with cash alternatives of $2.5 million and $2 million
- A Gold Coast property valued at $1.3 million
CBS alleges that these giveaways “involved an element of chance” but Portelli “did not hold a licence to conduct the lottery in South Australia.” The state has strict regulations around trade promotion lotteries to protect consumers.
Not Backing Down
Appearing on Portelli’s behalf, lawyer Ben Lodge made it clear they want to take this matter to trial as quickly as possible to clear his client’s name. “Our instructions are that the matter is contested and we are keen to progress the matter to trial as soon as we can,” Lodge told the Adelaide magistrates court.
Portelli himself was not required to front court for this hearing. The case has been adjourned until March, but his legal team is pushing for an early resolution, adamant the giveaways were above board. The billionaire is known for his flashy persona and extravagant prizes used to promote his businesses.
High Stakes Showdown
With multiple charges and some of his most high-profile giveaways under a legal cloud, Portelli is facing a high stakes battle to prove his lotteries were legal. A conviction could carry hefty penalties and reputational damage for the prominent businessman.
But Portelli and his company remain defiant, ready to fight the charges at trial. They maintain the subscription model and giveaways were compliant with relevant lottery and consumer laws.
This case will be closely watched, with potential ramifications for trade promotion lotteries and other contest-based marketing tactics. As the legal drama unfolds, the future of Portelli’s headline-grabbing giveaways hangs in the balance.
For now, the self-made billionaire is betting on his lawyers to convince the court that his lotteries were not a game of chance, but a legitimate play to reward his loyal customers. Only time will tell if Portelli’s luck holds out in front of the magistrate.
