Why authorities are coming for Adrian Portelli – as shocking allegations emerge about his company: ‘Preying on hopes and fears’

The Block billionaire Adrian Portelli is bankrolling his lavish party-boy lifestyle with a ‘deplorable’ business practice which preys on the poor, an anti-gambling advocate has warned.  

Portelli, 35, popularly known as ‘Mr Lambo’ was charged over the conduct of his private lottery business LMCT+, Daily Mail Australia exclusively revealed on Thursday.

South Australia’s Consumer and Business Services launched an investigation into the operations of the Melbourne businessman’s lottery business in September last year.

The SA government department confirmed it was prosecuting Portelli and Xclusive Tech Pty Ltd, which trades as LMCT+ just one day after Portelli handed out $150,000 worth of Coles vouchers to struggling western Sydney residents to buy groceries.

Portelli faces nine counts of conducting/assisting 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, Portelli could face a maximum penalty of $190,000. The first mention of the case is scheduled for January 15 in the South Australian Magistrates Court.

Portelli has an estimated net worth of more than $1billion – and he made much of his fortune through LMCT+, a subscription based lottery.

Portelli splashed major cash hosting a lavish bash at his multimillion dollar penthouse in Melbourne’s CBD on Thursday night just hours after he copped charges.

No expense was spared with go-go dancers and famous Aussie DJ Havana Brown providing the entertainment.

The star-studded guest list included actress Nicky Whelan and Canadian-American YouTubers the Nelk, who were among the revellers who shared images to social media.

He also boasted that his businesses recorded a massive increase in sales following the charges.

‘Sales spiked last night from 6pm across businesses,’ he wrote on social media, appearing to thank the media for the free publicity. 

He has been accused by anti-gambling advocates of preying on low-income Aussies who pay up to $100 a month for lottery draws. 

He also took a swipe at the SA government and offered a new ‘giveaway’.

‘It’s okay SA we still love you,’ he captioned a selfie with his baby son.

‘Your gambling commissioner won’t allow you to win major life changing prizes so I’ve decided to run exclusive, daily $1000 cash giveaways to you guys instead.

Tim Costello, chief advocate of the Alliance for Gambling Reform, told Daily Mail Australia that he believed LMCT+ was a gambling business.

‘What is effectively a gambling product exploiting a loophole is deplorable, and I think the loophole should be closed,’ Mr Costello said.

‘The feature that always is the signature of gambling in Australia is it comes from the poorest post codes, and enriches those who are already massively rich.

‘It’s a transfer from the poorest to the richest, preying on hopes and fears and on poverty.’

‘Australia has the biggest gambling losses in the world because we have the most lax policies in this world, and this is an example of that.’

Former South Australia Senator Nick Xenophon, who campaigned against pokies, was not impressed with Portelli’s business practices.

‘This is not what trade promotion licences were intended to be,’ Mr Xenophon continued.

‘This looks like a lottery disguised as a trade promotion, and if it is shown to be a loophole it needs to be acted on.

‘It needs to be thoroughly investigated.’

Asked whether it would consider revoking LMCT+’s licence, a NSW Fair Trading spokesperson said, ‘this matter is currently under review by interstate regulators’.NSW Fair Trading is not currently investigating LMCT+, although it held two separate investigations into the company in 2022 and 2023.

The Victorian Gambling and Casino Control Commission also investigated complaints in 2023, of which none resulted in findings against the company, a spokesperson for the commission said.

Meanwhile, the continuing investigation by South Australia’s Consumer and Business Services has resulted in the prosecution beginning in that state’s magistrate’s court.

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.’

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.