By Matt Hansen, Partner

Following a 2-day trial in September 2025, the Adelaide Magistrates Court has handed down its decision in the dispute between Consumer and Business Services South Australia (CBS), and Adrian “Lambo Guy” Portelli’s company, Xclusive Tech Pty Ltd, trading as Licensed Motor Car Trader Plus (LMCT+) over its popular promotional platform. LMCT+ was alleged by CBS to have breached the Lotteries Act 2019 (SA) and Lotteries Regulations 2021 (SA) by conducting unlicensed lotteries, and Portelli was separately alleged to have assisted in conducting the unlicensed lotteries.

CBS sought to impose the maximum penalty of $10,000 per breach for 10 charges against LMCT+ for conducting unlawful lotteries, as well as for 9 additional charges against Portelli directly for assisting in the conduct of the same. However, on 27 March 2026 the Adelaide Magistrates Court found that although LMCT+ was guilty of conducting unlicensed lotteries, Portelli himself was found not guilty in respect of the charges against him personally.

Read on as we analyse what this could mean for trade promotion lotteries hoping to replicate the LMCT+ business model.

What happened?

Portelli launched LMCT+ in 2018, as a paid subscription platform that offered exclusive discounts and rewards to members. There were multiple tiers of subscription with varying value, with the higher value tier having access to more discounts and rewards. In addition, the platform ran continuous “giveaway” prize draws, providing paying subscribers with entries into the draw, with the number of entries depending on the subscription tier.

The prize draws were conducted by LMCT+ as trade promotion lotteries, under permits issued by authorities in NSW, ACT and SA. Trade promotion lotteries can be lawfully conducted by businesses to promote their goods or services, provided entries are provided free of charge alongside purchase of those goods or services. This is a common requirement across all State/Territory regulations.

Around late 2022, CBS allegedly advised LMCT+ that they no longer considered their prize draw activities to be trade promotion lotteries as they considered the entries into the draw to be the primary product delivered by the subscription, and not the other discounts and platform benefits. LMCT+ allegedly defied this decision and continued to conduct their draws as trade promotion lotteries on a national scale.

CBS commenced proceedings to bring charges against LMCT+ under Section 10 of the Lotteries Act 2019 (SA) in regards to 10 promotions conducted between January 2023 and May 2024, alleging that they constituted the conduct of unlawful lotteries as they did not hold the requisite licences to be conducted in SA. CBS also separately sought to bring 9 charges against Portelli personally, for assisting in the conduct of the unlawful lotteries.

Section 10 of the Lotteries Act 2019 (SA) states “A person must not conduct, or assist in the conduct of, an unlawful lottery.” The maximum penalty per breach is $10,000, with CBS seeking a total of $190,000 in penalties.

Portelli and CBS argued the case in Adelaide Magistrates Court over 2 days in September 2025. On 27 March 2026, Magistrate Melainie Burton delivered her decision, stating that the promotions conducted by LMCT+ were not, in her view, trade promotion lotteries as defined by the Lotteries Regulations 2021 (SA) but rather, “standard lotteries” (which would be classified as “Major Lotteries” under the Regulations) which can only be conducted by charities under specific licence, and as LMCT+ was neither a charity, nor did it hold licenses for these lotteries, they had conducted unlawful lotteries in breach of Section 10.

Specifically, Magistrate Burton commented:

“The primary products being bought and sold for value were the draw entries … In my view, the draw entries are at the very heart of the transactions … I find, beyond any reasonable doubt, that XT [LMCT+] conducted 10 standard lotteries as alleged.”

However, Magistrate Burton found Portelli not guilty of “assisting” the conduct of the promotions, stating:

“I am not prepared to find that the simple act of drawing an entry in a lottery is … sufficient to bring it within the scope of the substantive offence of assisting in the conduct of an unlawful lottery”. 

LMCT+ was fined $40,000 in total, which was far below the maximum penalty sought. Following the decision, Portelli stated on social media:

“They would’ve made more money from me issuing the permits that are entitled to the business to begin with.”

Is He Right?

He could be!

Explain How!

License fees for trade promotion lottery licenses issued by CBS vary depending on total prize pool value, and whether or not the applicant elects to pay a “premium fee” for faster processing time (being 5 business days, as opposed to 15 business days for a standard application).

The maximum fee to be paid for the highest tier of total prize pool (being $200,000+) is currently $5,106 for a standard fee, or $10,213 for a premium fee. Between 2023 and 2024, the fees would have been slightly lower, being $4,808 for a standard fee, or $9,617 for a premium fee as of 1 July 2023, and prior to this, the fees were $4,588 for a standard fee, or $9,177 for a premium fee as of 1 July 2022.

Based on this, assuming the 10 lotteries in question between January 2023 and May 2024 would have required the maximum permit fee, CBS would have collected up to anywhere between $45,000 – $96,000 approximately for issuing the 10 licenses in question.

In either case, Portelli is correct that the $40,000 penalty is likely far less than what CBS could have collected in fees if issuing the licenses.

Then What Was The Point?

CBS needed to assert its authority to ensure that businesses do not conduct lotteries in SA without appropriate licenses. It is important for CBS to demonstrate it can still enforce its powers to impose penalties on those who contravene the law.

Does This Mean I Can Run A Subscription Based Standard Lottery?

No, as generally only charities are eligible to sell tickets into lotteries. Private organisations cannot sell tickets into traditional lotteries for commercial gain.

What About Lotto?

Lotto is a State-sponsored public lottery and is licensed to nominated government owned companies via separate and specific legislation.

So, Does All This Mean Subscription Based Trade Promotion Lotteries Are Illegal?

In SA, yes. In other States/Territories? Not yet.

Magistrate Burton’s comments on the classification of the lotteries as “standard lotteries” rather than “trade promotion lotteries” is based on the principle that the entries in the LMCT+ promotions are not truly free, as the entries are the “primary products” that customers are really paying for. Therefore as far as SA is concerned, these types of promotions do not qualify as trade promotion lotteries.

As it stands, other lottery regulators in other States and Territories have not publicly expressed a similar view, nor commented on other subscription-based trade promotion lotteries run by similar platform operators. However, now that Magistrate Burton has set a precedent in respect of the interpretation of the definition of “trade promotion lottery” and how this applies to a subscription-based model, other State/Territory regulators could take a similar view.

The more prolific these types of promotions become, the more likely it is that regulators will notice and consider further action. And it may have already begun. ABC News recently reported that Fair Trading NSW has cancelled the Trade Promotion Lottery Authority of RS Rewards, another LMCT+ style promotional platform. Verify NSW reports that the Authority was cancelled on 13 March 2026, and social media is flooded with complaints from NSW customers claiming that RS Rewards quietly began excluding NSW residents from their prize draws from early March. Verify NSW indicates that the cancellation was due to a compliance history, however no further details are available. RS Rewards promotion Terms and Conditions presently exclude SA, NSW and ACT residents from entry (i.e. the 3 jurisdictions where permits are required to be obtained to conduct trade promotion lotteries).

In addition, ABC News also reported that former Wallabies player and current ACT Senator David Pocock has made gambling one of his focus issues, and is calling for a national gambling crackdown, with subscription platforms such as RS Rewards and LMCT+ firmly in his sights. ABC News also states in that same report that laws pertaining to trade promotion lotteries are being reviewed by State regulators.

Where Does This Leave You?

Any subscription model that offers entries as a purely and demonstrably secondary product, with the primary product being of quantifiable value, would have a stronger argument that it can be classified as a trade promotion lottery, e.g. a subscription service which delivered physical goods, such as magazines, or on-demand streaming content.

However, you should seek advice on your concept or proposed model to ensure it can fit within the definition of a trade promotion lottery (outside of SA), and ensure that any value attached to the subscription price is quantifiable, capable of substantiation, and able to be realised by customers.

Lastly, bear in mind that these types of promotions are vulnerable to potential regulatory change or challenge by other State/Territory based regulators in future, and reviews with an eye towards big changes may already be underway. Prospective future Portelli-inspired entrepreneurs are warned that these activities may be lucrative in the short term, but their long-term revenue prospects cannot be guaranteed if they are later deemed unlawful in another State or Territory, or deemed unlawful on a national scale.

Contact us

If you would like further information on the above and how it impacts on you or your business, please contact one of our experts below. We can provide tailored legal and practical advice to assist you with reviewing your trade promotion lottery concepts, terms and conditions and related advertising materials, and any claims or representations made within those materials, or providing general advice on compliance with trade promotion lottery regulations in all States and Territories, as well as the Australian Consumer Law.