Adrian Portelli accused of exploiting a legal loophole by giving away prizes worth millions of dollars including all five houses from The Block
Adrian Portelli is accused of taking advantage of a legal “loophole” to allow his company to give away all five houses from the 2024 season of The Block.
Portelli, 35, made history last Sunday night when he bought every Block home on Phillip Island for a whopping $15.03 million during the final.
After the record auction, the billionaire announced on Facebook that he would be giving away all the houses in a ‘resort giveaway’ through his company LMCT+.
The Guardian has accused Portelli and his prize-giving company of exploiting a “loophole” to give away “$70 million worth of prizes”, including the Phillip Island properties from the Channel Nine reality show.
The publication referenced a video Portelli posted online in February in which he claimed he was told by an “unspecified gaming commission” when he first started LMCT+ that the company was legally unable to raffle cars.
“It was at that crucial moment,” he said in the video. ‘I could have thrown it all in, [but] I wonder what happens if I just give the car away to one of my members who bought the software, and everyone who bought the software, I give the car to them.’
Adrian Portelli is accused of taking advantage of a legal ‘loophole’ to allow his company to give away all five houses from the 2024 season of The Block
“So ten minutes later I call the gaming commission back and I’m like, ‘Hey, what happens if I give the car away to one of my customers?’ And she says, “Yes, that works.”
Portelli added that he stopped using the word “lottery” after that.
“It’s not a loophole, it’s a legal way to give away a car,” he said.
The publication stated that only non-profit organizations can run lotteries in Australia.
Companies, meanwhile, can run trade promotions that are subject to government regulation, as long as entry is free or in exchange for goods or services.
LMCT+ offers goods and services in the form of a membership that offers discounts at selected stores, as well as access to prize draws in the rewards club.
In the case of The Block giveaway, LMCT+ is giving members the chance to win the entire Block Phillip Island Resort with five fully furnished luxury homes or take home $8 million in tax-free cash.
The promotion also offers one-time packages ranging from $10 for one entry to $500 for 500 entries.
What the company is doing is beyond expectations, with a spokesperson for the Victorian Gambling and Casino Control Commission (VGCCC) telling the Guardian that after investigating complaints about LMCT+, none “resulted in findings against the company under Victorian law”.
The Guardian has accused Portelli and his prize-giving company of exploiting a “loophole” to give away “$70 million worth of prizes”, including the Phillip Island properties from the Channel Nine reality show.
The publication referenced a video Portelli posted online in February in which he claimed he was told by an “unspecified gaming commission” when he first started LMCT+ that the company was legally unable to raffle cars. Also pictured are Maddy and Charlotte, the winners of the 2024 Block
Similarly, a spokesperson for the NSW Fair Trading Commission, which investigated the company in 2022 and 2023, found no evidence that LMCT+ broke the law.
The release revealed that an investigation into LMCT+ is currently underway by South Australia’s Consumer and Business Services.
Following Sunday’s record-breaking Block auction, Portelli announced the massive resort giveaway on Facebook.
‘Under new management! And as mayor of the city of Portelli, I would like to announce a world first. Let’s give away an FKN resort!’ Portelli captioned his post on Facebook.
‘1 Giveaway – 1 Prize – Winner gets the entire resort OR $8,000,000 tax-free cash immediately instead! Let the game begin.’
The announcement included a photo of Portelli posing next to one of his lavish cars in the Block complex he had just purchased.
‘Under new management! And as mayor of the city of Portelli, I would like to announce a world first. Let’s give away an FKN resort!’ Adrian captioned his post on Facebook.
‘1 Giveaway – 1 Prize – Winner gets the entire resort OR $8,000,000 tax-free cash immediately instead! Let the game begin.’
Portelli said in the video that he then stopped using the word “lottery,” adding, “It’s not a loophole, it’s a legal way to give away a car.”
Portelli, 35, made history on Sunday night when he bought every Block home on Phillip Island for a whopping $15.03 million during the final.
After the record auction, the billionaire announced on Facebook that he would be giving away all the houses in a ‘resort giveaway’ through his company LMCT+.
‘Under new management! And as mayor of the city of Portelli, I would like to announce a world first. Let’s give away an FKN resort!’ Adrian captioned his post on Facebook.
‘1 Giveaway – 1 Prize – Winner gets the entire resort OR $8,000,000 tax-free cash immediately instead! Let the game begin.’
The announcement included a photo of Portelli posing next to one of his lavish cars in the Block complex he had just purchased.
He was all smiles as he leaned back against his vehicle, holding an LMCT+ banner with a “No Vacancy” sign artfully captured in the image.
The Portelli ‘rewards club’ has made its billions by having its customers pay for different membership levels to receive a number of entries into luxury giveaways.
Portelli, who became a household name after his high-profile signings in previous seasons, is no stranger to turning Block homes into major publicity stunts.
He first raised eyebrows in 2022 when he arrived at Omar and Oz’s auction in a yellow Lamborghini, earning him the nickname Mr Lambo.
His $4.5 million bid for the pad was pipped by Danny Wallis, with Portelli ultimately picking up Sharon and Ankur’s home for $4.5 million after the auction.
After dismissing accusations that he was a sham bidder – to drive up prices – Portelli returned in 2023, when he bought three homes and spent a total of $12.4 million.
His company, LMCT+, has regularly raffled off properties from the show, including last year’s $5 million purchase of Steph and Gian’s winning home.
Daily Mail Australia has contacted Portelli for comment.