EXCLUSIVE
The Block billionaire Adrian Portelli has been charged by a state consumer watchdog over the conduct of his private lottery business LMCT+, Daily Mail Australia can exclusively reveal.
South Australia’s Consumer and Business Services launched an investigation into the operations of Melbourne businessman Mr Portelli’s lottery business as early as September last year.
And just one day after Mr Portelli created a wave of positive headlines by handing out $150,000 worth of Coles vouchers to help struggling western Sydney residents buy groceries, the SA department confirmed it was prosecuting Mr Portelli and Xclusive Tech Pty Ltd, which trades as LMCT+.
Mr Portelli faces nine counts of person conduct/assist in the conduct of an unlawful lottery, and the company faces ten counts of the same charge, the courts confirmed.
If convicted on all charges, he could face a maximum penalty of $190,000. The first mention is set down for January 15 in the South Australian Magistrate’s Court.
Popularly known as ‘Mr Lambo’, Mr Portelli, 35, has an estimated net worth of more than $1billion – and he made much of his fortune through LMCT+, a subscription based lottery.
He has been accused by anti-gambling advocates of preying on the hopes of low-income Aussies who pay up to $100 a month for lottery draws.
But the company says it is simply a ‘membership reward service’ that generates millions of dollars for local businesses.
Adrian Portelli arrived at Coles in Fairfield West flanked by security guards
The business has more than 300,000 customers who pay a subscription fee, with options ranging from a $20 to a $100 a month
It has more than 300,000 customers who pay a subscription fee, with options ranging from $20 to a $100 a month.
Subscribers get access to discounts from partners such as Amazon, Temple & Webster and Elite Supplements – although the website only releases the details to people who sign up.
The main attraction is the company’s monthly lottery draws for cash, cars and homes. The last draw, on November 24, resulted in $1million cash going to one subscriber.
The more a subscriber pays, the more ‘accumulating entries’ they’re given in each draw.
Mr Portelli operates LMCT+ under a NSW licence as a ‘trade promotion’ – a type of lottery originally designed to help businesses attract customers by rewarding them with prizes.
Under the licence, customers can get entries into the draws because they are paying for the ‘goods and services’ of the business – the rewards and discounts it offers.
Adrian Portelli’s company offers monthly draws for cash, cars and homes. The last draw, on November 24, resulted in $1million cash going to one subscriber
Mr Portelli’s lavish lifestyle – including a luxury car collection and multi-million dollar properties across Australia – is a subject of fascination of his fans
An LMCT+ spokesperson told Daily Mail Australia that the company is a ‘membership reward service which proudly generates millions of dollars for local businesses and creates savings for Australian families’.
‘The business also contributes to positive community initiatives through philanthropic investment,’ the spokesperson said.
‘These outcomes are particularly important during a cost-of-living crisis. Mr Portelli and LMCT+ are very aware of their social licence and take their legal and regulatory obligations seriously.
‘To this end, the business conducts itself in accordance with all required regulatory approvals and partners with government to meaningfully contribute to economic and social projects.
‘LMCT+ looks forward to driving further value for its partners and members into the Christmas holiday period.’
The entrepreneur was seventh on the Financial Review Young Rich List this year, with an estimated net worth of $1billion
Thousands of west Sydney residents lined up in 33C for a free Coles voucher on Tuesday
Mr Portelli’s lavish lifestyle – including a luxury car collection and multi-million dollar properties across Australia – is a subject of fascination of his fans.
He made headlines on Tuesday for giving away $150,000 worth of Coles vouchers to 1,000 Sydneysiders – many of whom waited in line for hours in the 33C heat.
The desperation of some of the attendees highlighted a national cost of living crisis.
Mr Portelli arrived in Sydney on his private jet for the event, and was flanked by security guards as he posed for pictures with delighted coupon holders.
‘It’s great to be able to offer some assistance to families before Christmas,’ he told Daily Mail Australia.
‘Why not? I’m able to assist with people, so I may as well spend the money.’
He also shocked TV viewers earlier this month when he bought all five Phillip Island properties on The Block for a staggering $15.03million.
Portelli’s net worth has been valued at over $1billion by the Australian Financial Review, taking into account his collection of properties and luxury cars as well as the paper value of LMCT+.
The entrepreneur was seventh on the Financial Review Young Rich List this year.
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Read more at DailyMail.co.uk