Scalping is the practice of buying event tickets and then reselling them for a profit. This often results in shows selling out immediately, leaving fans frustrated when scalpers get all the tickets. There are a few key factors that enable scalpers to scoop up so many tickets so quickly.
Bots and Automated Buying
Scalpers often use ticket buying bots or automated services to purchase tickets the moment they go on sale. These bots can process orders much faster than a regular person can. They allow scalpers to buy dozens or hundreds of the best tickets within seconds.
Venues and ticket sellers try to combat bots with CAPTCHA tests and by limiting purchase quantities. However, scalpers find ways around these defenses by developing more advanced bots or hiring people to manually pass CAPTCHA tests. With enough resources, scalpers can overwhelm ticket sales sites and grab huge inventories instantly.
Presales and Insider Access
Scalpers also gain early access to tickets through presales for groups like fan clubs or credit card holders. They sign up for these presales in order to buy tickets before the general public has access. This gives them first pick of the best seats.
Additionally, some scalpers have connections with venue employees or ticket brokers that let them buy inventory before it is publicly available. They are essentially shopping before the store opens. This insider access further stacks the deck in the scalpers’ favor.
Prime Locations and High Demand
Scalpers focus on the most in-demand and profitable events. Concerts in major markets like Los Angeles, New York, and London are hot targets. The biggest artists like Beyonce or Taylor Swift are prime candidates. Scalpers also hit up high-profile sporting events like the Super Bowl or the World Cup.
For these hot events, demand dramatically outstrips supply. Fans are willing to pay much more than face value to get a ticket. This gives scalpers the ability to resell at huge markups. The highest demand allows them to maximize profits.
How Scalping Works
The ticket scalping process typically follows a few main steps:
Step 1: Buying Tickets in Bulk
As described above, scalpers use various methods to rapidly acquire large amounts of tickets:
– Bots or automated services to submit orders faster than humans
– Presales and insider connections for early access
– Focusing on the highest-demand events
Top scalpers can buy hundreds or even thousands of tickets in the initial sales. This leaves far fewer for the general public.
Step 2: Pricing and Listing for Resale
Once they have tickets in hand, scalpers research pricing trends and current demand to determine resale values. Data from past events and ticket resale sites like StubHub provides guidance.
For highly in-demand shows, they may price tickets at several times face value. A $100 ticket could be marked up to $400 or $500. For less popular events, the markup may only be 10-20%.
Scalpers list tickets on secondary market sites like StubHub, Vivid Seats, or Craigslist. Major scalpers have the resources to list widely and market their ticket inventory.
Step 3:Profiting from Desperate Fans
As show dates approach, demand increases from fans who missed out on initial sales. At the last minute, some people become willing to pay almost anything to get a ticket.
Scalpers take advantage of this desperation by spiking prices as game or concert day nears. Some even engage in “slow selling,” gradually releasing more tickets as prices rise. They maximize profits by exploiting fans’ fear of missing out.
Is Scalping Legal?
Scalping is legal in many parts of the United States, though some states have enacted restrictions:
- At least 10 states ban selling tickets above face value without an official reseller license
- Some states limit markups to only a certain percentage above face value
- A minority of states (e.g. New Jersey, Arkansas) have broader bans on ticket scalping
However, enforcement is often light even where scalping laws exist. Fans are sometimes reluctant to see scalping criminalized. As long as there is money to be made, scalpers have incentive to take the legal risks.
Anti-Scalping Laws
Some of the common restrictions aimed at scalpers include:
- Requiring reseller permits/licenses
- Caps on resale prices
- Limits on the number of tickets one person can resell
- Disclosure requirements for ticket listings
- Anti-bot laws to prohibit automated buying
But scalpers still find ways to flout these laws, or base operations in permissive states. Enforcement presents challenges as well.
Impact on Fans and Artists
Ticket scalping has some negative effects:
Higher Prices for Fans
Scalpers drive up prices, sometimes to outrageous levels. Fans can’t get tickets for original face value and often pay 2-10 times as much. Concert-goers have to factor in hundreds of dollars more for a scalped ticket.
Event | Face Value Ticket | Scalper Price |
---|---|---|
World Cup Final | $200 | $5,000 |
Adele Concert | $150 | $1,000 |
NBA Finals Game 7 | $400 | $4,000 |
Disappointed Fans
Many fans miss out altogether because scalpers drive up costs so much. Someone who could afford a $100 ticket may be priced out at $500. Scalping excludes music and sports lovers of more modest means.
Artists Lose Out Too
The artists themselves don’t profit from marked-up secondary sales. Scalping may drive their own loyal fans away. musicians have spoken out against predatory practices that hurt consumers.
How Can Scalping Be Controlled?
Completely stopping scalping is unlikely given the money at stake. But there are some measures that could help:
Better Ticket Limits
Venues could enforce much lower limits on how many tickets one person can buy, or require IDs to be shown at entry. This can deter bulk purchasing. However, resourceful scalpers still find workarounds.
Lotteries and Waiting Rooms
Some ticketing sites now use “waiting rooms” that randomly order customers in line before sales open. This reduces the advantage of bots. Similarly, lotteries for popular shows distribute tickets more equitably.
Dynamic Pricing
Sellers like airlines use demand-based flexible pricing. A similar model for events would lower costs for less popular dates/seats while charging more for prime spots. This puts a cap on speculative scalping.
Paperless and Mobile Tickets
Requiring IDs and credit cards used at purchase stops scalpers from reselling. But this also hinders legitimate transfers between friends. Apps like Gametime offer direct mobile ticket transfers as an alternative.
Capping Resale Prices
Laws limiting scalpers’ markups, like 200% above face value, are also proposed. But again, enforcement is an obstacle. Evasion will persist where profits remain so alluring.
Conclusion
Ticket scalping persists because huge profits can be made from high demand events with limited supply. Scalpers use every trick at their disposal to sweep up inventory. Lax regulation in many states enables lucrative resale markets. Better policies could make scalping harder and protect fans. But the practice is likely to continue unless the financial incentives disappear entirely. Events want to maximize interest and attendance, while scalpers exploit that popularity. Finding a better balance remains elusive.