The short answer is yes, people still scalp tickets in 2023. Ticket scalping, also known as ticket brokering, refers to the act of reselling tickets for popular events at prices higher than their original face value. Scalping has been around for decades and continues to be a lucrative business for some despite anti-scalping laws and crackdowns by event organizers.
What is ticket scalping?
Ticket scalping involves buying tickets to concerts, sports games, theater shows, or other events with the intention of reselling them at a higher price. Scalpers typically target high-demand events where tickets are likely to sell out quickly. By snapping up large quantities of tickets using special software or insiders at ticket vendors, scalpers can create an artificial shortage and then charge desperate fans exorbitant markups on secondary resale sites and marketplaces.
Some key characteristics of ticket scalpers:
- They have no intention of actually attending the event themselves.
- They use bots and other technical means to buy up tickets faster than ordinary consumers can.
- They resell the tickets at much higher prices, often many times the original face value.
- They focus on hot events where people will pay premium prices.
Scalpers have been known to charge $500 for a $50 ticket or $5,000 for a $500 ticket if the demand is high enough. The lure of big profits is why so many people are willing to take the risks associated with scalping despite its controversial reputation.
Is ticket scalping illegal?
The legal status of ticket scalping varies widely in the United States and around the world. Many U.S. states have laws restricting or banning the resale of tickets at marked-up prices, including New York, Connecticut, Michigan, and others. However, these anti-scalping laws are riddled with loopholes and are notoriously difficult to enforce in practice.
Some key legal considerations:
- At the federal level, there are no anti-scalping laws in the U.S. Scalping is regulated at the state level.
- 10 states prohibit scalping completely, while around 20 others have various restrictions.
- Scalping is legal but regulated in some states like Massachusetts and Florida.
- Many states with bans have exemptions for resellers who are registered brokers or have a vendor license.
The internet has further complicated anti-scalping enforcement. Scalpers can easily sell tickets online and evade jurisdiction-limited state laws. Overall, scalping occupies a legal gray area – restrictive enough to create risks but permissive enough to allow the practice to thrive.
Why do people scalp tickets?
There are several reasons why ticket scalping continues to persist despite a dubious reputation:
- Huge profits: Markups on hot tickets can be 500-1000% or more. Scalping is extremely lucrative for those willing to take the risks.
- Limited supply: Scarcity drives up prices. Scalpers thrive on supply-demand imbalances for rare events.
- Die-hard fans: Loyal fans will pay almost anything to see their favorite band, team, etc. rather than miss out.
- Corporate clients: Businesses will shell out for premium seats and experiences for clients.
- Failures in primary market: Insufficient ticket releases and lack of safeguards against bot attacks.
As long as there is serious money to be made from high demand and tight supply, scalping will persist. Unethical resellers are all too willing to exploit inefficiencies in the primary market to profit from desperate consumers.
How has technology impacted ticket scalping?
Technological advances have both helped and hindered ticket scalpers in recent decades:
- Bots: Software bots allow mass ticket buys within seconds, beating regular fans.
- Mobile apps: Reselling tickets via smartphone is now easier than ever.
- Digital tickets: Electronic tickets can’t be lost or counterfeited, improving security.
- Social media: Scalpers leverage Facebook, Twitter, etc. to advertise and find buyers.
- Big data analytics: Data mining helps predict hot events and set optimal prices.
- Anti-bot policies: Captchas, purchase limits, etc. try to block mass scalper buys.
While anti-scalping technologies have made small dents, scalpers continue to utilize cutting-edge tools to maximize profits. Technological solutions to bot attacks and illicit resales have remained elusive so far.
Has the prevalence of scalping changed over time?
Looking at the history of ticket scalping provides some useful context:
- Early 1900s: Anti-scalping laws emerged, but were loosely enforced.
- 1970s & 80s: Scalping exploded around major music acts like Bruce Springsteen.
- 1990s: The internet enabled larger scalping networks to emerge.
- 2000s: Bots began dismantling ticket sale protections, fueling scalping.
- 2010s: Scalping became more technically sophisticated and widespread.
Rather than dying out, scalping has evolved right alongside the primary ticket market. As events become more commercialized and ticket technology advances, scalping thrives. Although percentages vary from year to year, economists estimate 10-20% of major event tickets are resold through secondary markets today.
Has the public attitude toward scalping changed?
Scalping has long been criticized as unfair and exploitative. But there are signs of shifting public attitudes:
- Greater acceptance among younger fans used to paying premiums.
- Rise of “white hat” resellers who provide customer service.
- View of scalping as a way to combat lack of transparency and bot issues in primary market.
- Increased lobbying for deregulation of the secondary market.
- Recognition that economic principles of supply and demand apply.
While many still resent price gouging and lack of access, scalping is increasingly seen as an inevitable byproduct of market forces around high-demand events. A sizable segment of the public now tolerates the practice.
Do promoters and artists condone scalping?
Event promoters and performers have a complex relationship with secondary ticket markets:
- Major promoters like Live Nation run their own resale platforms, earning commissions.
- Artists benefit from higher scalped prices fueling perception of huge demand.
- Scalped sold-out shows reinforce the allure of exclusivity and success.
- Some bands and comedians publicly condemn scalping of their events.
- Class actions allege collusion between primary and secondary market actors.
Ultimately the prevalence of scalping is a symptom of inadequate policies and incentives in the official primary channels. The varied reactions from the event industry reflect this uneasy tension of disapproval yet complicity.
What are the main pros and cons of scalping?
Potential Pros of Scalping:
- Provides a secondary market for high demand events.
- Gives fans a last chance for hard-to-get tickets.
- Encourages increased primary market releases.
- Rewards entrepreneurial spirit.
Potential Cons of Scalping:
- Dramatically inflates prices for regular fans.
- Often relies on unethical activities like bots.
- Does not ensure ticket authenticity or security.
- Contributes nothing creative to the event.
Perspectives on scalping boil down to views on economic theory, consumer rights, and business ethics. It brings significant costs but also provides a remedy, however imperfect, for supply and demand imbalances in ticket availability.
What are some tips for avoiding scalpers?
Savvy fans unhappy with scalped prices can utilize several strategies:
- Buy early: Purchase tickets as soon as sales open to the general public.
- Use pre-sales: Take advantage of artist presales before the main release.
- Join fan clubs: Many clubs get access to special allotments.
- Beware brokers: Verify resellers have an official license.
- Avoid resale sites: Stick to primary vendors and box offices.
- See less popular events: Scalpers target the hottest tickets.
While not always feasible, buying direct, buying early, and avoiding hype can help fans evade scalped tickets. Multi-pronged efforts by vendors to improve safeguards also continue to help.
What does the future hold for ticket scalping?
Experts speculate scalping will evolve in several ways in the future:
- Increased lobbying may relax regulations in some regions.
- New technologies like blockchain could reduce scalper bots.
- Dynamic “surge pricing” may replace fixed face values.
- Events may migrate toward auctions or secondary integrations.
- Crackdowns on egregious practices will continue.
- Calls for primary market reforms will escalate.
In short, ticket scalping is unlikely to disappear any time soon. However, market corrections promoting greater transparency, mobile integration, and anti-bot protection provide some hope of ameliorating the worst abuses. Despite progress, scalping likely remains a fact of life for major live events.
Conclusion
Ticket scalping remains a divisive yet resilient practice deeply embedded in the event industry. Driven by huge potential profits and technological advances, resellers show no signs of going away despite anti-scalping laws and consumer frustration. While increased protections have provided some relief, scalping continues to thrive on supply-demand gaps and market inefficiencies. Ongoing debate continues around the ethics, economics, and consumer impacts of the practice. Despite increased public acceptance of premium secondary prices, scalping seems poised to remain a controversial fixture of high-demand event ticketing for the foreseeable future.