For the purposes of NRS 598.100 to 598.130, inclusive:
1. "Compensation" does not mean payment based on sales of goods or services to persons who are not participants in a pyramid promotional scheme or endless chain and who are not purchasing in order to participate in such a program.
2. "Promotes" means inducing one or more other persons to become a participant in a pyramid promotional scheme or endless chain.
3. A "pyramid promotional scheme" means any program or plan for the disposal or distribution of property and merchandise or property or merchandise by which a participant gives or pays a valuable consideration for the opportunity or chance to receive any compensation or thing of value in return for procuring or obtaining one or more additional persons to participate in the program, or for the opportunity to receive compensation of any kind when a person introduced to the program or plan by the participant procures or obtains a new participant in such a program.
(Added to NRS by 1971, 666; A 1985, 530)