Back in June the Norwegian Gaming Board announced they’d finished their investigation into Lyoness.

Somewhat surprisingly, the Gaming Board decreed that Lyoness ‘
does not engage in illegal activities in Norway.
‘

The initial announcement was just that, with a detailed report to be forthcoming. In the meantime statements made by Gaming Board staff suggested the investigation was half-assed.

As the Gaming Board’s Monica Alisøy Kjelsnes
told Norwegian newspaper outlet VG
,

Lyoness is not registered as a national business in Norway, (so) there are no accounts with the Company Registrar that the (Gaming) Authority can compare (Lyoness’ supplied) the numbers with.

Couple this with the Gaming Board revealing in their initial announcement that their investigation was

based on the information that the Gaming Board has about Lyonness operations in Norway today.

And it was starting to look like the Gaming Board had just gone over a few Lyoness marketing brochures before concluding their investigation.

Late last week, a detailed breakdown of the Board’s investigation was finally published.

Did the Gaming Board half-ass their investigation? Read on to find out.

Reaffirming their initial conclusion, the Gaming Board’s report begins in a similar fashion to their earlier summary:

The Gaming Board has investigated Lyoness to determine whether their activities in Norway constitute an illegal pyramid sales system, where the payment of compensation and ability to generate revenues is primarily because others are recruited to the system, with no sale or consumption of goods taking place, or the use of any other services or other benefits.

The Gaming Board’s conclusion is that Lyoness and its operations in Norway, as it stands at present, is not a

illegal pyramid sales system under the Lottery Act § 16 second paragraph.

This conclusion is based especially on information received from Lyoness showing that more than 50% of their income from Lyoness operations in Norway today comes from the sale of goods and services from businesses associated Lyoness loyalty in its trading network, and not from the recruitment of members.

That much we already knew, but then things start to get interesting:

After the Lottery’s assessment of Lyoness in the years 2012 and 2013, it found Lyoness fueled an illegal pyramid sales system in Norway because more than 50% of income during this period was from the recruitment of members.

Huh?

Lyoness didn’t change their Accounting Unit centric business model between 2013 and 2014, so what changed?

And the even bigger question raised: In 2012 and 2013, did the Gaming Board exclusively rely on information supplied to them by Lyoness, or did they actually go out and investigate the company themselves?

After receiving numerous tipoffs from the general public with concerns that Lyoness was operating as a pyramid scheme, the Gaming Board commenced their investigation in Decmeber 2013.

On December 4th, the Gaming Board requested Lyo

🤖 Quick Answer

What was the Norwegian Gaming Board's conclusion regarding Lyoness's legal status?
In June, the Norwegian Gaming Board concluded that Lyoness does not engage in illegal activities within Norway. However, subsequent statements from Gaming Board officials indicated the investigation lacked thoroughness, as Lyoness was not registered as a national business in Norway, preventing proper account verification with the Company Registrar.

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