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Norway's gaming authority orders Lyoness to cease pyramid scheme activity

Enforcement & compliance · SectorWire deskSource published

Source: Lotteritilsynet (Norway) ·

Summary

The Norwegian Gaming Authority decided on 31 May 2018 that Lyoness must immediately cease all operations, participation and expansion of its activity in Norway, ruling it an illegal pyramid-like sales scheme under Section 16 of the Lottery Act. The decision targets myWorld Norway AS and Lyoness Europe AG, and Lyoness has three weeks to appeal. The authority said Lyoness's earnings in Norway derive from recruitment of participants rather than the sale or consumption of goods, services or other benefits.

Why it matters

The order requires Lyoness to halt recruitment and payments from Norwegian participants, though parts of the decision have suspensive effect until the appeal deadline.

Cite as: SectorWire, “Norway's gaming authority orders Lyoness to cease pyramid scheme activity”, 5 June 2018, https://sectorwire.news/item/norway-s-gaming-authority-orders-lyoness-to-cease-pyramid-scheme-activ/

Key facts

Market
Norway
Broader company and regulator reporting

Status and next steps

Appeal status
The decision targets myWorld Norway AS and Lyoness Europe AG, and Lyoness has three weeks to appeal.
Company statement
The authority said Lyoness's earnings in Norway derive from recruitment of participants rather than the sale or consumption of goods, services or other benefits.

Earlier fines and penalties by Lotteritilsynet

Earlier decisions in the same section by the same regulator, newest first. Chosen by regulator, section and, where both stories state an amount, similar size. Details are as each story reports them.

DateCompanyAmountStoryAppeal status
Lyoness, myWorld NorwayNot statedLotteritilsynet orders Lyoness to halt illegal pyramid scheme in NorwayPart of the order was deferred until the three-week complaint deadline expires, and Lyoness may appeal within three weeks.
WorldVenturesNot statedBorgarting court rejects WorldVentures appeal in Norway pyramid caseAppeal lodged
Explore the report’s connections
Entity mapoperates inlicensed byfined byLyoness Europe AGLotteritilsynetLyonessmyWorld Norway ASNorwayNorsk TippingMaster Online AS
Entities and relations reported in this entry and our coverage.

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