Authorities sought to reclaim “life-changing” prizes from winners of trade promotions, as revealed during the trial of prominent businessman Adrian Portelli. Portelli, 36, from Melbourne, faced a two-day trial in Adelaide Magistrates Court, charged with nine counts of conducting or assisting in the conduct of an unlawful lottery in South Australia. His business, Xclusive Tech Pty Ltd, operating under the name LMCT+, faces ten counts of the same offense.
The charges, brought by South Australia’s Consumer and Business Services, allege that Portelli’s company conducted ten separate lotteries without a proper license between January 29, 2023, and May 16, 2024. The court reviewed videos showing Portelli conducting draws for prizes, including homes featured on the TV series The Block, luxury cars, boats, and cash prizes, all of which were won by South Australians.
Legal Arguments and Revised Charges
Murugan Thangaraj SC, representing Portelli, expressed surprise at the prosecution’s revised information during the opening address. “We understood from the original information that we were dealing with the standard lottery charge,” Thangaraj stated. “With the revised information, the wording incorporated trade promotion lottery … the prosecution was clearly only about standard lottery and now it says it incorporates both.”
Thangaraj questioned whether the revised charges clearly included both standard and trade promotion lotteries. He highlighted a “cease and desist” letter from the commissioner, which requested that any South Australian winners be informed that their prizes were void due to the unlawful operation of the lottery.
“To say that the life-changing impacts on those people, the South Australians, ought to be taken away from them, is the proposition that the commissioner has put,” Thangaraj argued.
Prosecution’s Stance and Legal Framework
Stephanie Wilson, representing the liquor and gambling commissioner, acknowledged that Portelli had previously been granted trade promotion licenses in South Australia. However, two applications for specific licenses were denied in May and June 2021. Wilson emphasized that the prosecution’s position is that these lotteries are unlawful, regardless of whether they are trade promotion lotteries or standard lotteries.
Under South Australian law, trade promotion lotteries with prizes exceeding $5,000 require a license, and entries must be free of charge. Portelli’s company offers members subscriptions to a “rewards club” providing entries to win cars and properties, which has raised questions about compliance with these regulations.
Portelli’s Defense and Business Model
Outside the courtroom, Portelli defended his business practices, stating that his company had returned over $120 million to its customers. “There were a lot of companies trying to replicate our business model because they saw the success of it,” he remarked. “Some people weren’t doing the right thing, and I think it was easier for them (CBS) to just pull the plug.”
Each of the 19 offenses carries a maximum penalty of $10,000. Portelli has publicly stated on social media that if convicted, he would “round it up to $200,000.”
Awaiting the Verdict
Magistrate Melanie Burton has reserved her decision, leaving the future of the prizes and Portelli’s business practices in limbo. The case highlights the complexities and regulatory challenges surrounding trade promotion lotteries and the significant impact on winners who may have to forfeit their prizes.
As the legal proceedings unfold, the broader implications for trade promotion lotteries and consumer protection in South Australia remain a focal point of discussion. The outcome of this case could set a precedent for how similar cases are handled in the future, impacting both businesses and consumers alike.
