Ticket scalping, also known as ticket brokering, is the resale of tickets for popular events. Scalpers will buy large quantities of tickets to concerts, shows, and sporting events with the intention of reselling them at a higher price to make a profit. So is ticket scalping still happening today? Let’s take a look.
What is ticket scalping?
Ticket scalping involves buying tickets to events and then reselling those tickets at a higher price. Scalpers employ various tactics to obtain tickets, such as using bot software to buy up tickets the moment they go on sale online. They then resell the tickets on secondary markets like StubHub, Vivid Seats, or even Craigslist and Facebook groups.
The main goal of ticket scalpers is to profit from the difference between what they initially paid for the tickets and what buyers are willing to pay for the tickets on the secondary market. Ticket scalpers focus on events where there is high demand but limited ticket availability, allowing them to charge well above face value.
Is ticket scalping legal?
The legality of ticket scalping varies by jurisdiction. In many parts of the US, ticket scalping is legal and considered a business opportunity so long as no laws are being broken in the acquisition of tickets. However, some states and cities do have regulations and restrictions on ticket resale:
- Some states cap the resale price at a certain percentage above face value.
- Many jurisdictions forbid scalping within a certain distance of an event venue.
- Scalpers may be required to register as ticket brokers and obtain a license or permit.
However, the practice remains legal in most areas and is rarely prosecuted even when laws are in place. The restrictions that do exist are only lightly enforced. Scalping tends to fall into a gray area, discouraged by event organizers but not seriously clamped down on by authorities.
Why do people scalp tickets?
There are several key reasons people get into the ticket scalping business:
- Profit potential – There is money to be made from buying tickets at face value early and then reselling at a premium when demand increases. Scalpers can generate sizable profits from huge markups on hot tickets.
- Limited risk – Tickets to major events nearly always sell out initially and continue to have demand. As long as scalpers don’t overpay early on, there is minimal risk of being stuck with inventory they can’t unload.
- Low barriers to entry – Becoming a ticket broker requires very little upfront investment or specialized skills. The secondary ticket market is largely unregulated.
- High demand – Fans are often willing to pay well above face value to secure tickets to their must-see events, especially closer to the event date.
Ticket scalping can prove very lucrative due to the huge margins that can be achieved from buying tickets early and then flipping them closer to the event. Even after absorbing broker fees from resale sites, sizable profits remain.
How has technology impacted ticket scalping?
In recent years, ticket scalpers have leveraged technology to gain an edge in buying up and reselling tickets:
- Bots – Scalpers use bot software to automate purchasing tickets online the moment they go on sale. Bots can buy tickets much faster than any individual could manually.
- Big data – Scalpers analyze past sales data to predict which events will have the most demand and best resale potential.
- Third-party platforms – Resale through sites like StubHub provides scalpers with massive visibility and buyers they may not reach otherwise.
- Mobile apps – Scalpers can now list and sell tickets directly from their smartphones rather than needing to be at a computer.
While these technologies have enabled more sophisticated and efficient scalping operations, they have also made it more difficult for the average fan to purchase tickets during the initial sales period. Anti-bot legislation has been proposed but not yet widely enacted.
Does ticket scalping still happen today?
Ticket scalping is still very much alive and well today. By all accounts, the secondary ticket market is larger than ever before thanks to continued high demand for top concerts, theater performances, and sporting events coupled with the limited supply of tickets.
Online ticket resale platforms like StubHub and Vivid Seats have proven especially conducive to scalpers, providing them with massive visibility and exposure. StubHub alone sees over $4 billion in ticket resale transactions annually. Meanwhile, NFL ticket prices on the secondary market average $400, more than double the $150 face value.
Not only is scalping still happening today, but the practice seems to only be growing as events keep selling out in minutes and technology makes it easier than ever for scalpers to operate.
What events are most targeted by scalpers?
Scalpers tend to target events that have the highest demand and limited ticket availability. The most popular events for ticket scalping include:
- Major concerts – Tours by artists like Taylor Swift, Beyonce, and Bruce Springsteen are prime scalper targets.
- Professional sports – Games for pro leagues like the NFL, NBA, and MLB routinely attract scalpers.
- Theater performances – Hit Broadway musicals like Hamilton see huge markup on secondary markets.
- Music festivals – Events like Coachella, Lollapalooza, and Austin City Limits are scalping hotspots.
- Comedy shows – Appearances by big name comedians like Kevin Hart also draw scalper attention.
Essentially any event with super high demand relative to the number of seats available in the venue is likely to attract significant scalper activity. Fans vying for limited tickets are willing to pay premium prices.
Average Ticket Resale Prices of Popular Scalped Events
Event | Average Resale Price |
---|---|
New York Yankees MLB game | $123 |
Los Angeles Lakers NBA game | $215 |
Taylor Swift concert | $345 |
U2 concert | $268 |
Coachella | $567 |
As illustrated by the table above, top events in pro sports, music, and other entertainment see massive markup on the secondary market. Fans end up paying well over face value on average to attend hot events.
Is ticket scalping good or bad?
There are arguments on both sides of whether ticket scalping is ultimately good or bad:
Potential Benefits of Scalping
- Provides a secondary market for tickets
- Gives fans a last minute way to buy tickets
- Helps set market value for high-demand events
- Opens up access for people willing to pay more
Potential Drawbacks of Scalping
- Drives up prices for average fans
- Scalpers don’t add value or improve experience
- Limits ticket availability during initial sales
- Makes it harder for fans on a budget to attend
There are reasonable arguments on both sides of the debate. Critics condemn scalpers for gouging fans and making tickets unaffordable, while supporters say they simply provide an aftermarket for people still willing to pay higher prices.
Does ticket scalping help or hurt artists and event organizers?
The impact of ticket scalping on the artists, teams, venues, and promoters running events is also disputed:
Potential Benefits for Organizers
- They profit from initial ticket sales regardless of resale price
- High secondary market prices create perception of high demand
- Late sellouts as scalpers buy up remaining inventory
Potential Drawbacks for Organizers
- Secondary sales undermine exclusivity of tickets
- High prices can alienate artist’s fanbase over time
- Scalpers divert revenue from primary sales
- Artists and teams don’t share in secondary market profits
There are plausible upsides and downsides for event organizers as well. In many cases artists and promoters actually benefit from late sellouts and the perception of huge demand. However, others argue the long-term fan relationship is hurt by unaffordable prices.
What measures are being taken to regulate or restrict scalping?
While scalping remains widely legal, there are some efforts to curb abusive practices:
- Resale price caps – More states are passing laws limiting resale markup for tickets.
- Restricted zones – No scalping zones around venues prevent last minute street sales.
- Anti-bot laws – Jurisdictions are passing legislation to crack down on automated bulk buying.
- Strict ticket limits – Event organizers are trying to restrict the number available per person.
- Account verifications – Marketplaces now require resellers to have name-matching accounts.
However, enforcement remains challenging. Scalpers find creative ways to work around many of the rules. And on the whole, existing regulations only lightly discourage rather than seriously deter scalping in most places.
What does the future look like for ticket scalping?
Most experts believe scalping will continue to thrive and grow in years ahead. Demand remains massive for top live entertainment acts and sports teams. At the same time, venues only have so much capacity. This supply-demand imbalance will likely persist and further incentivize scalping.
Advances in technology will also open up new avenues. Scalping bots continue to grow more advanced. Blockchain-based ticketing aims to eliminate fraud but could also supercharge the secondary market. And expanded online resale platforms provide scalpers with built-in distribution networks.
While anti-scalping laws will tighten in some regions, large markets like the US continue to treat it as an unregulated business. Few forces appear poised to seriously disrupt current scalping practices anytime soon.
Conclusion
Ticket scalping remains alive and well in 2023, driven by surging demand and prices for top live entertainment events coupled with limited ticket availability. While some jurisdictions impose regulations, the practice thrives largely unhindered. Scalping provides major profits for brokers but also drives up costs for fans. New technologies aid scalpers and expanded online secondary markets fuel continued growth of the multibillion dollar industry. Despite criticisms, ticket scalping seems poised to endure as a lucrative business in years ahead.