An Australian company owned by billionaire entrepreneur Adrian Portelli is poised to receive a significant penalty after being convicted of operating illegal lottery schemes in South Australia. The Adelaide Magistrates Court delivered its verdict on Friday, finding Xclusive Tech Pty Ltd, which trades under the name LMCT+, guilty on ten separate counts of conducting unlawful lotteries without the required licence.
Details of the Illegal Lottery Operations
Prosecutors alleged that between January 29, 2023, and May 16, 2024, the company organised ten distinct lotteries in South Australia without holding the necessary permits. These unlicensed operations awarded participants substantial prizes, including cash sums, luxury vehicles, and residential properties. The court heard evidence that these activities directly contravened state gambling regulations.
Director Adrian Portelli Acquitted of All Charges
While the company itself was found culpable, Adrian Portelli, the sole director of Xclusive Tech, was cleared of all nine charges of assisting in the conduct of these illegal lotteries. Prosecutors had argued that Portelli personally facilitated the draws, but Magistrate Melanie Burton found insufficient evidence to support these allegations. The Melbourne-based businessman, widely recognised from television appearances on The Block as the 'Lambo Guy', did not attend court for the verdict announcement.
Portelli's Defence and Licensing Dispute
During the trial's opening in September, Portelli spoke to media representatives, asserting that his company maintained compliance with regulations across all Australian states and territories except South Australia. He claimed that state authorities had been 'fed misinformation' about LMCT+'s operations. 'We were compliant once upon a time, we had a good relationship with them and someone woke up on the wrong side of the bed,' Portelli stated. 'One morning they woke up and said, 'We're not giving you your permits any more', and they took tens of thousands of dollars off us and didn't refund us our money.'
Portelli further elaborated on what he described as administrative confusion, saying, 'We've got a bunch of correspondence between both parties, they don't even know what's going on. They've given us wrong information and this is why we kept operating the way we were.' His legal representative informed the court that Portelli had made unsuccessful attempts to obtain the correct licensing documentation from South Australian authorities.
Prosecution's Position and Company's Popularity
The prosecution maintained that the company's activities constituted clear violations of gambling laws, regardless of licensing disputes. Portelli's defence lawyer countered by suggesting that prosecutors were attempting to undermine the 'life-changing impacts on South Australians' provided by the lotteries, which offered houses, cars, and cash through raffle-style competitions. The court heard that LMCT+ has attracted substantial public interest, with estimates suggesting the platform boasts at least 300,000 subscribers across Australia.
Sentencing and Future Proceedings
Following the guilty verdict against Xclusive Tech Pty Ltd, sentencing submissions were scheduled to be heard later on Friday. The court will determine an appropriate penalty for the ten counts of conducting unlawful lotteries, which could involve substantial fines or other sanctions. This case highlights ongoing tensions between innovative digital gambling platforms and traditional regulatory frameworks in Australia's evolving lottery landscape.
