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 has been accused of exploiting 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 snapped up every Block home on Phillip Island for a staggering $15.03 million during the finale.

Following the record-breaking auction, the billionaire announced on Facebook that he would be giving away all the houses in a 'resort giveaway' through his LMCT+ company. 

The Guardian has accused Portelli and his prize giveaway business of exploiting a 'loophole' to be allowed to give away '$70 million in prizes', including the Phillip Island properties from the Channel Nine reality show.

The publication pointed to 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 pivotal moment,' he said in the video. 'I could have thrown it all in, [but] I’m like what happens if I just gave the car away to one of my members that bought the software and then anyone that’s bought the software, I give the car to them.'

'So 10 minutes later I call back the gaming commission and I’m like, "hey what happens if I gave the car away to one of my customers?" And she’s like "yeah, that works".'

Portelli added that he then stopped using the word 'raffle'.

'It's not a loophole, it's a legal way to give away a car,' he said. 

The publication stated that only not-for-profit organiations are able to conduct lotteries in Australia.

Companies, meanwhile, are able to run trade promotions which are subject to state regulation as long as entry is free or in exchange for goods or services.

LMCT+ offers goods and services in the form of membership that offers discounts at selected stores, as well as access to prize draws in its 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-off packages, ranging from $10 for one entry to $500 for 500 entries.

What the company is doing is above board, with a Victorian Gambling and Casino Control Commission (VGCCC) spokesperson telling the Guardian that after investigating complaints about LMCT+ found none 'resulted in findings against the company under Victorian legislation'.

Similarly, a spokesperson for the NSW Fair Trading Commission, which investigated the company in 2022 and 2023, found no evidence that LMCT+ was in breach of the law.

The publication revealed that an investigation into LMCT+ was currently underway by South Australia's Consumer and Business Services. 

Following the record-breaking Block auction on Sunday, Portelli announced the massive resort giveaway on Facebook.

'Under new management! And as mayor of Portelli town, I would like to announce a world first. LET'S GIVE AWAY A FKN RESORT!' Portelli captioned his post on Facebook.

'1 Giveaway - 1 Prize - Winner takes the whole resort OR $8,000,000 instant Tax-Free Cash instead! Let the game begin.'

Accompanying the announcement was a photo of Portelli posing alongside one of his lavish cars inside the Block complex he just purchased.

'Under new management! And as mayor of Portelli town, I would like to announce a world first. LET'S GIVE AWAY A FKN RESORT!' Adrian captioned his post on Facebook.

'1 Giveaway - 1 Prize - Winner takes the whole resort OR $8,000,000 instant Tax-Free Cash instead! Let the game begin.'

'Under new management! And as mayor of Portelli town, I would like to announce a world first. LET'S GIVE AWAY A FKN RESORT!' Adrian captioned his post on Facebook.

'1 Giveaway - 1 Prize - Winner takes the whole resort OR $8,000,000 instant Tax-Free Cash instead! Let the game begin.'

Accompanying the announcement was a photo of Portelli posing alongside one of his lavish cars inside the Block complex he 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 'rewards club' Portelli has made his billions from sees his customers pay for different tiers of membership to receive a number of entries in luxury giveaways.

Portelli, who became a household name after his high-profile purchases on previous seasons, is no stranger to turning Block homes into major publicity stunts.

He first raised eyebrows in 2022, arriving at Omar and Oz's auction in a yellow Lamborghini, which earned him the nickname Mr Lambo.

His $4.5million bid on the pad was pipped by Danny Wallis, with Portelli eventually picking up Sharon and Ankur's house after the auction for $4.5million.

After fending off accusations that he was a dummy bidder - there to drive up prices - Portelli returned in 2023, when he bought three houses, spending $12.4million in total.

His company, LMCT+, has frequently raffled off properties from the show, including last year's $5million purchase of Steph and Gian's winning home. 

Daily Mail Australia has reached out to  Portelli for comment.