Billionaire Adrian Portelli's viral subscriber-based lottery is set to become illegal as the government prepares to roll out gambling reforms.

The legislation, which is yet to be introduced to parliament, will stamp out lotteries operating 'under the guise of' subscription-based rewards clubs, such as Mr Portelli's giveaway business LMCT+.

LMCT+, which is short for 'Licensed Motor Car Trader', is a membership-based business offering luxury cars and experiences through subscription prize draws. 

The platform, which currently offers discounts to stores like Rip Curl and Speedo, is known for its mammoth giveaways which have previously included supercars, luxury homes and millions of dollars in cash. 

According to details of the bill outlined last week, Mr Portelli's company would be classified as an interactive gambling service 'and therefore prohibited'.

'Many organisations in Australia operate genuine trade promotion reward club or loyalty programs,' the bill reads.

'However, concerns have emerged that some operators are using these models to offer lottery-style products under the guise of trade promotions.

'These services typically involve ongoing membership fees and frequent prize draws for high-value items such as cars, houses or large cash prizes.'

The bill also calls for feedback on whether services like LMCT+ should be allowed to operate under a state or territory authorisation.

Communications Minister Anika Wells said the reforms would help 'minimise' children's exposure to wagering advertising and would 'break the link' between sports and gambling.

'We want to keep lotteries aligned to their real purpose, community based and embedded in the principle of fairness,' she said.

'We make no apologies for driving these reforms, which will close a loophole that allow these so-called lotteries to masquerade as trade promotions.'

Mr Portelli's lawyer Omar Juweinat said the company supported reforms that would remove any bad actors from the industry, but that it was important 'not to paint an entire industry with the same brush'.

'The objective of reform should be consumer protection, transparency and integrity,' he said. 

'Good operators should be encouraged to continue innovating and investing in Australia, while those who undermine consumer confidence through misleading or unfair conduct should be removed from the market.'

It comes just months after the company was found guilty of running illegal lotteries in South Australia and slapped with a $40,000 fine.

In March, Xclusive Tech Pty Ltd, which operates as LMCT+, was found guilty on ten counts of conducting an unlawful lottery in Adelaide Magistrates Court.

It was alleged the company did not hold a licence to conduct ten lotteries in South Australia between January 29, 2023 and May 16, 2024, which resulted in people winning cash, cars and houses.

Mr Portelli, who is best known to television audiences as The Block's so-called 'Lambo Guy', was found not guilty on all nine counts of assisting in the conduct of those lotteries after the prosecution alleged he'd assisted in operations by conducting the draws.

LMCT+ and Mr Portelli are currently appealing against the court ruling.

According to the Australian Financial Review, Mr Portelli makes $60million in profit per year from LMCT+'s operations.

The business is currently up for sale.