Billionaire Adrian Portelli's viral subscriber-based lottery is set to become illegal as the Australian government prepares to introduce gambling reforms. The legislation, yet to be presented to parliament, will target lotteries operating under the guise of subscription-based rewards clubs, such as Portelli's giveaway business LMCT+.
What is LMCT+?
LMCT+, short for Licensed Motor Car Trader, is a membership-based business offering luxury cars and experiences through subscription prize draws. The platform, which currently provides discounts to stores like Rip Curl and Speedo, is known for its massive giveaways, including supercars, luxury homes, and millions of dollars in cash.
Government Crackdown
According to the bill outlined last week, Portelli's company would be classified as an interactive gambling service and therefore prohibited. The bill states: 'Many organisations in Australia operate genuine trade promotion reward club or loyalty programs. However, concerns have emerged that some operators are using these models to offer lottery-style products under the guise of trade promotions. These services typically involve ongoing membership fees and frequent prize draws for high-value items such as cars, houses or large cash prizes.'
The bill also seeks feedback on whether services like LMCT+ should be allowed to operate under state or territory authorisation. Communications Minister Anika Wells said the reforms would help minimise children's exposure to wagering advertising and break the link between sports and gambling. 'We want to keep lotteries aligned to their real purpose, community based and embedded in the principle of fairness,' she said. 'We make no apologies for driving these reforms, which will close a loophole that allow these so-called lotteries to masquerade as trade promotions.'
Industry Response
Portelli's lawyer, Omar Juweinat, stated that the company supports reforms that remove bad actors from the industry but emphasised the importance of not painting the entire industry with the same brush. 'The objective of reform should be consumer protection, transparency and integrity,' he said. 'Good operators should be encouraged to continue innovating and investing in Australia, while those who undermine consumer confidence through misleading or unfair conduct should be removed from the market.'
Legal History
The proposed ban comes months after LMCT+ was found guilty of running illegal lotteries in South Australia and fined $40,000. In March, Xclusive Tech Pty Ltd, operating as LMCT+, was convicted on ten counts of conducting an unlawful lottery in Adelaide Magistrates Court. The company allegedly lacked a licence for ten lotteries in South Australia between January 29, 2023 and May 16, 2024, resulting in winners receiving cash, cars, and houses. Portelli, known as The Block's 'Lambo Guy', was acquitted on all nine counts of assisting in those lotteries. Both LMCT+ and Portelli are appealing the court ruling.
According to the Australian Financial Review, Portelli earns approximately $60 million in profit annually from LMCT+. The business is currently up for sale.
