Adelaide Magistrate Court delivered a significant ruling Friday in a case concerning the operation of online competitions offering high-value prizes, including homes from the popular television show The Block. While entrepreneur Adrian Portelli was found not guilty on nine charges related to unlawfully running lotteries in South Australia, his company, Xclusive Tech trading as LMCT+, was convicted on all ten charges it faced and fined $40,000. The case highlights the complexities of regulating online prize draws and the importance of licensing for public protection.
The legal proceedings centered around competitions run by LMCT+ between January 2023 and May 2024. These competitions allowed entrants to purchase tickets – ranging from $10 for one entry to $500 for 500 entries – for a chance to win substantial prizes, including cash, luxury vehicles, and properties acquired by Portelli through his appearances on The Block. The Australian Broadcasting Corporation reported that Magistrate Melanie Burton determined these constituted unlawful lotteries under South Australian law.
The Core of the Legal Challenge
South Australian legislation requires that all lotteries be conducted under an approved license. This regulatory framework is designed to safeguard the public from fraudulent or exploitative practices. According to court documents, LMCT+ did not possess the necessary license to operate lotteries within the state. The prosecution, led by Liquor and Gambling Commission prosecutor Stephanie Wilson, argued that the company had been warned about the illegality of its operations but deliberately continued, “deliberately flouting” SA laws. Wilson emphasized the lack of oversight regarding the significant prize money and properties involved in the draws.
The defense, represented by Ben Lodge, maintained that the competitions were legitimate and offered “life changing prizes,” asserting that LMCT+ was not exploiting consumers. Lodge as well pointed out that the company held a license from the Recent South Wales regulator. ABC News reported that the defense lawyer argued there was no suggestion the lotteries were fraudulent.
Melbourne property investor Adrian Portelli (centre) at court in September 2025. (ABC News: James Wakelin)
National Scope, Local Regulations
Magistrate Burton acknowledged that the lotteries were conducted nationally, but noted a smaller proportion of entrants were from South Australia. Despite the broader reach, the court emphasized the importance of adhering to individual state regulations. The $40,000 fine levied against LMCT+ reflects the seriousness with which the court views the violation of South Australian lottery laws. Burton stated the offense was a first for the company and categorized it as being of low to medium severity, adding that there were no concerns about the company’s ability to pay the fine.
The case raises questions about the regulatory landscape for online competitions offering substantial prizes. While LMCT+ possesses a license in New South Wales, this does not grant it the authority to operate unlawfully in other states. The differing regulatory frameworks across Australia create a complex environment for businesses operating nationally. The New South Wales Liquor and Gaming Authority website details the licensing requirements for lotteries and competitions within that state. You can find more information on their website.
Melbourne business owner Adrian Portelli is known for appearing on The Block. (Instagram: lmctplus)
Portelli himself did not appear in court for the verdict. The outcome of this case could have broader implications for similar businesses operating online competitions across Australia, potentially leading to increased scrutiny of licensing requirements and enforcement of lottery regulations. It underscores the need for companies to ensure full compliance with the laws of each state in which they operate.
The next step in this matter is the payment of the $40,000 fine by LMCT+. It remains to be seen whether the company will appeal the decision or take steps to secure the necessary licensing for future operations in South Australia. Further updates will likely be available through the South Australian court system and reporting from Australian news outlets.
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