'Rewards club' lottery billionaire Adrian Portelli sues former SA minister
Adrian Portelli is suing Andrea Michaels over comments she made when she was an SA minister. (Instagram: lmctplus)
In short:
Melbourne billionaire Adrian Portelli is suing former South Australian minister Andrea Michaels for defamation.
An SA woman won a $3.5 million home through his company but was ineligible under state law.
Ms Michaels called the situation "terrible" and "awful", which Mr Portelli has claimed damaged his reputation.
Billionaire Adrian Portelli, also known as "Lambo Guy", is suing former South Australian minister Andrea Michaels for defamation over comments she made about him and his "rewards club" lottery business LMCT+.
Last year, the company put homes from that season of TV show The Block in its prize draw. Customers could pay a membership fee to the company for "free" entries into the draw, among other benefits like discounts on brands.
A South Australian woman won a $3.5 million house through the lottery but was ineligible to win under South Australian gaming laws.
The state's gaming laws are the strictest in the country, and while South Australians are allowed to sign up for its discounts and other benefits, they cannot legally win any of the prize draws or giveaways.
In a media conference, Ms Michaels, who was then minister for consumer and business affairs, called the woman's situation "awful" and "terrible".
Andrea Michaels called the situation "awful". (ABC News: Brant Cumming)
She was also quoted in the Adelaide Now newspaper saying the business had "knowingly taken money from South Australians, knowing he wasn't licensed to operate a lottery in SA".
In The Advertiser newspaper, Ms Michaels was quoted saying: "He has created an awful situation for the South Australian woman at the centre of this by allowing her to enter and then win this lottery, while knowing South Australians weren't eligible because he didn't have a licence to operate in our state. It's terrible."
The lawsuit also cites comments she made to Nine News.
The defamation case had its first hearing in the South Australian Supreme Court on Friday.
The lawsuit centres on the argument that Ms Michael's comments in the press defamed Mr Portelli and that Ms Michaels knew her comments would be amplified and trusted by the public.
The filing says Adrian Portelli's reputation suffered. (Instagram: lmctplus)
In the statement of claim, Mr Portelli's lawyers allege that Ms Michaels implied he defrauds South Australians by taking money for lotteries he knows are unlicensed and cannot win, and suggested he was a con man.
The filing says that his reputation and professional identity suffered serious harm and that he has received death threats.
It also cites social media comments showing reputational harm, such as "don't buy any tickets from this scammer" and "investigate his entire fortune, a thorough audit".
"I wouldn't trust this guy from a bar of soap,"one user said.
"Given that these matters are presently before the court, it would be inappropriate for my client to engage in a public discussion regarding the allegations, the evidence, or the relief sought in the proceedings," Mr Portelli's lawyer Omar Juweinat told ABC News.
Mr Juweinat did not respond to specific questions about evidence proving Mr Portelli's identity was harmed, whether there were any attempts to resolve the matter before litigation, or what kinds of damages they were seeking.
Adrian Portelli is known for owning a collection of luxury cars. (Supplied: Instagram)
"The material filed in the proceedings speak for themselves and my client looks forward to the matter being determined according to law," Mr Juweinat said.
Ms Michaels was unreachable for comment.
Company fined over lotteries
At the time of her comments, the company and Mr Portelli were in court for allegedly running illegal lotteries between January 2023 and May 2024.
The company was found guilty by a South Australian court earlier this year and fined $40,000.
Mr Portelli was found not guilty.
Mr Portelli has previously told the ABC that his company has an entire team dedicated to making sure the prize draws follow the law.
Andrea Michaels was unreachable for comment about the case. (ABC News: Lincoln Rothall)
Rewards clubs have exploded in popularity across Australia, using loose community gaming laws, and claiming to have collectively given away hundreds of millions of dollars in prizes.
Along with veterinarian Chris Brown, Mr Portelli recently co-hosted the Channel Seven show My Reno Rules, a reality show where contestants renovated two houses bought by Mr Portelli.
The show described itself as "the biggest viewer giveaway in Australian television history" and directed viewers to the LMCT+ website where they could purchase a membership that would include "free" entries into the prize draw.
The company began as a "club" offering giveaways, along with discounts and events, but has recently opened a petrol station selling fuel at cost price only to members and is opening a supermarket later in the year.
As for the South Australian woman who missed out on The Block prize, Mr Portelli ended up personally offering her $100,000 instead of the $3.5 million house.
The court case continues.