Back in July it was revealed the Norwegian Gaming Board had 
reopened its pyramid scheme investigation
into Lyoness.

The investigation was reopened following a continued stream of complaints from the public, which prompted the Gaming Board to contact Lyoness in April.

The Gaming Board sought to have Lyoness address concerns it was running a pyramid scheme in Norway.

Lyoness’ response was filed in late May but failed to satisfy the regulator.

In July the Gaming Board requested “further information” from Lyoness, and that’s when we became aware of the renewed investigation.

In a letter dated October 6th, the Gaming Board has provided updates on their investigation since July.

The Gaming Board investigation seeks to determine whether Lyoness as a company is deriving revenue primarily from the sale of goods and services.

Complaints from the general public allege Lyoness primarily derives revenue from and pays commissions on affiliate recruitment.

Lyoness responded to the Gaming Board’s July “further information” request on August 31st.

Rather than address the fact Lyoness doesn’t sell goods and services (access to discounts is neither), the company instead

provided a legal opinion (“legal rating”) on Lyoness with respect to Norway

accused the Gaming Board of violating Norway’s Public Administration Act through an “unsound, non-independent and non-impartial” investigation

criticized the Gaming Board for providing Norwegian media with updates on the case until it’s completed

In short, Lyoness’ response was a cacophony of irrelevance.

(Lyoness’) tips are not relevant to the legal issues in this case.

The company did not confirm or deny whether information provided in the tips (we received) are correct or not.

Lyoness failed to address the one thing the Gaming Board was interested in, that being whether revenue was generated via the sale of products and services.

Nonetheless, the regulator has responded to Lyoness’ points as follows:

the legal basis for the investigationis the Norwegian Gaming Board is tasked with ensuring the Lottery Act is complied with

the relevant section of the Lottery Act that allegedly concerns Lyoness is section 16, which prohibits participation and promotion of “pyramid games and similar systems”

Section 16 of the Norwegian Lottery Act permits the Gaming Board

to request evidence that commissions paid in a suspected scheme were derived from the sale of goods and services and not recruitment

to order a company to rectifying or suspend suspected illegal activity

to impose administrative sanctions on companies that fail to comply

request written confirmation from offenders that stipulate they will cease Lottery Act violations

The Gaming Board stipulates that

anyone who intentionally or negligently violates Section 16 of the Lottery Act may be fined or imprisoned for up to three years.

With respect to the Public Administration Act, the Gaming Board stated it

believes (its) case handling is in accordance

🤖 Quick Answer

What prompted the Norwegian Gaming Board to reopen its investigation into Lyoness?
The Norwegian Gaming Board reopened its pyramid scheme investigation into Lyoness following a continuous stream of public complaints. The regulator contacted Lyoness in April to address concerns about potential pyramid scheme operations within Norway. Despite Lyoness's response filed in May, it failed to satisfy the Gaming Board's requirements, leading to the formal reopening of the investigation in July.

What specific concerns did the Norwegian Gaming Board raise about Lyoness?
The Gaming Board sought clarification on whether Lyoness was operating as a pyramid scheme in Norway. The primary focus of the investigation centered on determining if Lyoness derived its revenue primarily through pyramid scheme mechanisms rather than legitimate business operations. The regulator requested further information from the company to substantiate its business model legitimacy.

**What was the outcome of Lyoness's initial response to the Gaming

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