But the State Government, which wants its laws enacted this year, says the LIV will be proved wrong.
The Department of Justice has been working on the legislation since the Coalition won government in 2010.
In the same year outlaw gang the Finks won a High Court ruling against South Australian anti-bikie laws, and Hells Angels won a ruling against similar laws in NSW last year.
The Government says the law institute has not seen draft legislation, which would be drawn up to avoid successful High Court challenges.
Briefings are being held with Victoria Police and others.
Mr Holcroft said that proscribing gangs as criminal entities had been difficult and expensive.
"Effectively you will have to prove they are criminal organisations,'' he said.
"The Baillieu legislation is trying to create guilt by association.
"It's very difficult. I don't know whether it's worth the effort.''