The Norwegian Gaming Board has definitively banned Lyoness from operating nationwide after rejecting its second appeal on February 12th. The initial ban, issued in January 2018, stemmed from an investigation revealing that the company's Norwegian revenue primarily derived from direct unit investments, not the advertised cashback shopping. This structure meant commissions and investor returns were funded by new participants' money, a characteristic Ponzi scheme.

Lyoness first challenged the ban by emphasizing its cashback shopping model and submitting documentation about its frequent name changes. The company had operated under various guises, including Lyoness, Lyconet, Cashback World, and myWorld, attempting to distance itself from past transgressions. The Gaming Board dismissed these arguments, denying the initial appeal in June 2018.

Undeterred, Lyoness escalated the matter to the Complaints Board with a second appeal. This time, the company alleged procedural errors in the Gaming Board’s decision and argued the ban was disproportionate to any violations. Lyoness also sought the opportunity to rectify its business model's "illegal nature." The Complaints Board found no merit in these claims, concluding on May 12th that the Gaming Authority’s May 31, 2018 decision was procedurally sound and not excessive.

The Lottery Board, after a thorough review of Lyoness' operations, determined there was no basis for allowing the company to correct its illegal practices. Lyoness Europe AG and Lyoness Norway AS are now permanently prohibited from all business activities within Norway. This final decision confirms the company's status as an illegal pyramid scheme, a designation it has faced multiple times.