Billionaire Adrian Portelli facing a challenge to the legality of his ‘rewards’ business
Ostentatious billionaire Adrian Portelli is facing a challenge to the legality of his business after being charged with conducting an unlawful lottery.
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Billionaire Adrian Portelli is facing a challenge to the legality of the lottery business run by his company Xclusive Tech, which trades under the LMCT+ brand.
Mr Portelli, commonly known as “Lambo Guy”, and who is famous for his purchases of houses from television show The Block and stunts involving giving away thousands of dollars worth of shopping vouchers and food, has been charged personally with nine counts of conducting or assisting in the conduct of an unlawful lottery.
This follows an investigation launched by South Australia’s Consumer and Business Services department in September last year.
Mr Portelli could not be contacted for comment on Thursday, with his Instagram account showing he was hosting a party in his penthouse on Thursday evening.
Mr Portelli will face the South Australian Magistrates Court on January 15, the South Australian government confirmed on Thursday.
If convicted on all charges he could face a maximum penalty of $190,000.
His LMCT+ business is booming, with more than 100,000 subscribers paying between $19.99 and $99.99 per month for the chance to win cars, boats, cash and other giveaways.
Members can also get discounts at participating businesses.
Mr Portelli structured the business such that it seeks to avoid coming under the remit of gambling laws, which have strict provisions for the operation of lotteries.
Under the LMCT+ model, the prizes are classified as trade promotions, promoting the underlying business of offering member discounts.
Mr Portelli insists the company is a “membership reward service” which helps local businesses while also generating millions of dollars worth of savings for its members.
Mr Portelli debuted on The Australia’s Richest 250 List earlier this year, with an estimated fortune of $1.3bn.
He generated a media storm in May last year when he had his $2m McLaren Senna GTR hoisted by crane into his $39m penthouse apartment on the 57th floor of a Melbourne high-rise.
Behind all that, Portelli is driven by data and spreadsheets, with his business success translating into a growing collection of valuable assets including a private jet.
Earlier this week Mr Portelli pledged to give away more than $150,000 worth of free groceries to families in Western Sydney, giving out 500 gift cards at Penrith and Fairfield West.
Anti-gambling advocates have criticised the LMCT+ business model, saying it preys on vulnerable people and those on low-incomes.
Mr Portelli bought the five homes built during the latest season of The Block, staged on Phillip Island, with the houses to be put up as prizes.
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Originally published as Billionaire Adrian Portelli facing a challenge to the legality of his ‘rewards’ business
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