The Norwegian Gaming Board declared World Ventures an illegal pyramid scheme, ordering the company to halt all sales in the country. This ruling came after a nine-month investigation concluded in May 2013, finding the travel club's revenue primarily stemmed from recruiting new members, not from actual travel sales.
The Gaming Board first announced its investigation into World Ventures nearly a year prior. Officials expressed concern that the company might violate Norway's "Lottery Act," which prohibits pyramid schemes. Section 16 of the Act forbids creating, operating, participating in, or distributing such systems.
Norway's Lottery Act defines a pyramid as a "pyramid sales system where the consideration paid for the opportunity to earn income, mainly because the other offices of the system, and no sale or consumption of services or other benefits." World Ventures markets memberships in a travel club, promising discounts on global accommodation. These holidays are sold through a company called Rovia.
World Ventures also offers these memberships to sales representatives. These representatives earn commissions and bonuses for selling memberships. They also receive commissions from memberships sold by other sales representatives in levels below them. This structure resembles a pyramid.
The Gaming Board found World Ventures' activities in Norway constituted an illegal pyramid game. Revenue came almost exclusively from recruiting members, not from selling travel. By the end of May 2013, WorldVentures had 3654 members in Norway. Approximately 95 percent of these members also served as sales representatives.