Billionaire Adrian Portelli’s giveaways company is set to become illegal as Labor cracks down on private lotteries in its gambling reforms, but a representative of the viral businessman has urged the government “not to paint an entire industry with the same brush”.
Details of Labor’s long-awaited gambling reforms were revealed on Friday, highlighting changes to gambling advertising. But the laws will also stamp out on lotteries operating “under the guise of” subscription-based rewards clubs, such as Portelli’s LCMT+ giveaways business.
“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 said.
The amendment is designed to distinguish between genuine loyalty clubs, which contain “incidental” gambling promotions, and those that “rely on this exemption for their overall business model”. Under the changes, businesses like Portelli’s would be considered “interactive gambling services” and prohibited.
LMCT+ is a subscription-based platform that offers discounts to more than 2000 businesses – including Rip Curl, Speedo and Amazon. But it is perhaps best known for its high-value giveaways, to both subscribers and ticket-buyers, which have included luxury homes, supercars and millions of dollars in cash.
These giveaways have made Portelli beloved by his 1.4 million Instagram followers – but have also drawn the attention of government regulators.
In South Australia, Portelli and LMCT+ are appealing against a court ruling that found parent company Xclusive Tech Pty Ltd was conducting unlawful lotteries and fined it $40,000.
Communications Minister Anika Wells said Labor would ban “all dodgy lotteries, including subscription lotteries, as part of our gambling reforms”.
“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.”
Portelli’s lawyer, Omar Juweinat, said the businessman and LMCT+ supported reforms that remove bad actors from the industry but that legitimate companies should not be targeted.
“Any business that misleads customers, obscures its terms, or fails to conduct promotions transparently should be subject to strong regulatory oversight and enforcement,” Juweinat said. “At the same time, it is important that these reforms are grounded in a proper understanding of the industry.”
The gambling reform legislation has yet to be introduced to parliament.
Juweinat said trade promotions, which the minister called “so-called lotteries”, were only a small part of Portelli’s business, and thousands of paying members received value.
“It is therefore important not to paint an entire industry with the same brush,” he said.
“The objective of reform should be consumer protection, transparency and integrity. 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.”
Ben Kearney, the chief executive of the Australian Lottery and Newsagents Association, whose members welcomed the reforms, told The Age pseudo lotteries were riskier for customers than state-licensed lotteries.
“I think there’s no transparency for the consumer,” Kearney said.
“The traditional lottery products operate in a highly regulated model. There are integrity provisions, and so on, that are in place that guarantee the size of the prize pool, how many tickets are sold … the price of the tickets is regulated, everything is regulated.”
Portelli has run LMCT+ since 2018, and it made a $60 million profit in 2023, according to The Australian Financial Review.
He rose to prominence for buying up luxury homes on reality TV show The Block, when he became known for his love of expensive cars. In 2023, Portelli had a McLaren sports car craned 57 storeys into his CBD penthouse.
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
Angus Delaney is a reporter at The Age. Email him at [email protected] or contact him securely on Signal at angusdelaney.31Connect via email.
Natassia Chrysanthos is Federal Political Correspondent. She has previously reported on immigration, health, social issues and the NDIS from Parliament House in Canberra.Connect via X or email.From our partners
Read the full article here
