A rough ride for the Lambo Guy: Federal gambling reforms shine another light on trade promotions
Adrian Portelli, also known as the ‘Lambo Guy’, rose to prominence as the founder of LMCT+, a subscription-based membership service offering discount benefits and entry into prize draws for high-value prizes such as cars, cash, and luxury properties. LMCT+ has become one of Australia’s most high-profile examples of a business using trade promotions as a marketing tool.
Earlier this year, the operation of the LMCT+ subscription-based giveaway was found to be unlawful in South Australia. Portelli has since appealed the conviction, with the matter heard in the Supreme Court of South Australia last month.
Regardless of the outcome of this appeal, subscription-based promotional models may be significantly restricted or prohibited under proposed Federal online gambling reforms.
Start your engines: what is a trade promotion lottery and how is it regulated in Australia?
A trade promotion lottery is a marketing competition commonly conducted by businesses to promote their goods or services where prizes are awarded and winners are determined by chance, such as through prize draws. Unlike traditional lotteries, which are conducted primarily to generate revenue through ticket sales, entries into trade promotion lotteries are typically being free or linked to the purchase of a product or service rather than requiring payment solely to participate.
In Australia, trade promotion lotteries are regulated at a State/Territory level with requirements varying across jurisdictions. In some States and Territories, promoters must obtain a permit depending on the total prize pool value and how winners are selected. The table below provides a summary of the permit/authority requirements for trade promotion lotteries including general timing for applications to be considered by lottery departments and permits issued:
In other jurisdictions such as Victoria and Queensland, a permit may not be required, but promotions must still comply with strict rules around conduct, advertising, and consumer protection.
Compared with traditional lottery licences, trade promotion lottery permits are generally easier and less costly to obtain because they are intended to regulate promotional marketing campaigns rather than commercial gambling operations, resulting in simpler application processes, lower regulatory barriers, and significantly lower licensing or permit fees in many Australian jurisdictions.
Pit stop in South Australia: what happened in South Australia?
In its early stages, LMCT+ giveaways were conducted as trade promotion lotteries in South Australia under permits issued by the Consumer and Business Services (CBS). However, as the subscription-based giveaways evolved, CBS no longer considered them to be trade promotion lotteries and refused subsequent applications for permits. Despite this, Xclusive Tech Pty Ltd (Xclusive) continued to conduct the LMCT+ giveaways nationally including in South Australia.
In 2024, CBS initiated court proceedings to bring charges against Portelli and his company, Xclusive, for conducting and assisting in the conduct of unlawful lotteries without the required permits. The Adelaide Magistrates Court found Xclusive guilty of conducting the unlawful lotteries and Portelli was acquitted of charges for assisting in the conduct of the unlawful lotteries.
Trade promotion lotteries being regulated at a State/Territory level meant that although the LMCT+ promotions were found to be in breach of South Australian lottery laws, it did not violate lottery laws in other jurisdictions such as Victoria and New South Wales. LMCT+ giveaways continue to be conducted nationally with South Australian residents excluded from participating. In current LMCT+ giveaway terms and conditions, South Australian residents are explicitly excluded from being eligible to enter.
Portelli appealed the Adelaide Magistrates’ Court decision, which was heard in the Supreme Court of South Australia last month. However, this may not mark the end of Portelli’s legal challenges.
Canberra hits the brakes: how will Federal gambling reforms affect trade promotions?
In late May, the Federal Government released the exposure draft of the Interactive Gambling Amendment (Gambling Reform) Bill 2026, which proposes a range of reforms to Australia’s online gambling framework under the Interactive Gambling Act 2001 (Cth).
Amongst the proposed reforms is a clearer distinction between legitimate ‘trade promotion gambling services’ and lottery products being offered under the guise of trade promotions. The exposure draft clearly identifies that any services that require a membership or subscription fee to enter a lottery or game is not a ‘trade promotion gambling services’ but instead a prohibited interactive gambling service.
This change is widely seen as being directed at business models such as LMCT+, which has attracted regulatory scrutiny in recent years as seen in South Australia. If the exposure draft is passed in its current form, this distinction is likely to capture the LMCT+ model, meaning it could be classified as a prohibited interactive gambling service under Federal law, which would prevail over any inconsistent State or Territory legislation. In other words, LMCT+ giveaways may be outlawed nationally.
The online gambling reforms are expected to commence on 1 January 2027.
The final lap: what businesses should know
Recent legal issues involving LMCT+ and the online gambling reforms highlight the increasing scrutiny of trade promotions in Australia. Businesses must be cautious, as promotional structures that push the boundaries of trade promotions may risk being reclassified as a prohibited service under new online gambling legislation that is set to take effect from next year.
For businesses considering conducting trade promotions, careful structuring of the promotion and a clear understanding of trade promotion permit requirements remain critical to ensure compliance with applicable laws.