Scalping tickets refers to the resale of event tickets, often at prices significantly above face value. While some see it as an exercise of free market principles, others view scalping as an unethical practice that takes advantage of fans. As a result, a number of states have moved to ban or restrict the resale of tickets for excessive profit.
What is Ticket Scalping?
Ticket scalping is the practice of reselling event tickets for a profit. Scalpers typically purchase large quantities of tickets with the sole intention of reselling them at markups rather than attending the event themselves. The emergence of online resale sites like StubHub and Vivid Seats has made scalping much easier in recent years.
Some common practices in ticket scalping include:
- Using bot software to buy up popular tickets as soon as they go on sale
- Reselling tickets just outside event venues to capitalize on last-minute demand
- Charging large markups on high-demand events while offloading less popular events at or below face value
- Speculating on tickets in the hopes prices will rise closer to the event date
Why Do States Restrict Scalping?
There are a few key reasons why some states have enacted anti-scalping laws:
- Consumer Protection – Scalping may exploit fans by charging exorbitant markups on essential items like food, lodging, and transportation during major events.
- Price Gouging – Unregulated scalping could allow ticket prices for high-demand events to rise to unreasonable levels that ordinary fans cannot afford.
- Maintaining Public Order – States have an interest in preventing disorder or safety issues caused by ticket scarcity outside major events.
- Upholding Intended Pricing – Scalping undermines price caps or affordability measures on tickets sold by teams, venues, and promoters.
However, many economists see scalping bans as unnecessary infringements on the free market. In their view, scalping provides a useful service by allowing transfer of tickets to those who value them most. Nonetheless, consumer protection concerns remain the primary driver of anti-scalping laws.
Notable State Scalping Laws
Scalping laws vary widely in scope across different states. Here are some examples of major restrictions on ticket resale:
- New York – It is illegal to resell most tickets within 1,500 feet of an event venue if the resale price exceeds more than 45% of face value or $5, whichever is greater. This law covers major concert halls, theaters, stadiums, and arenas.
- Connecticut – Ticket resellers cannot charge over $3 above face value for most events at venues with over 6,000 seats. This includes venues like the XL Center in Hartford.
- Michigan – Scalping of tickets is prohibited within 1,000 feet of any stadium that seats over 10,000 people.
- North Carolina – Scalping is banned within a half mile radius of any event at a venue of over 3,000 seats.
- Ohio – Scalpers can only mark up ticket prices by $5 plus a reasonable service fee.
Some states target anti-scalping laws at specific high-profile events. For example, Kentucky and Tennessee have passed special bans on scalping tickets to the Kentucky Derby horse race.
Which 15 States Have Scalping Bans?
Here are the 15 states that currently prohibit ticket scalping in some form:
- Arkansas
- Connecticut
- Kentucky
- Louisiana
- Michigan
- Minnesota
- Mississippi
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio
- Pennsylvania
- Tennessee
- Wisconsin
The exact restrictions and event venues covered vary by state based on local statutes. Some of the most stringent anti-scalping laws are found in New York, Connecticut, North Carolina, and Tennessee.
State Scalping Restrictions
Here is an overview of the major scalping restrictions in each of the 15 states with bans:
State | Scalping Restrictions |
---|---|
Arkansas | Scalping prohibited within 200 feet of venue |
Connecticut | $3 markup limit for venues over 6,000 seats |
Kentucky | Scalping banned for Kentucky Derby tickets |
Louisiana | Reselling tickets above face value prohibited |
Michigan | Scalping banned within 1,000 feet of venues over 10,000 seats |
Minnesota | Reselling entertainment tickets prohibited without special license |
Mississippi | Scalping prohibited on public property |
New Jersey | Scalping at NJ Transit stations prohibited |
New Mexico | Scalping prohibited within 200 feet of venues over 2,000 seats |
New York | 45% markup limit near major venues |
North Carolina | Scalping banned within half mile of venues over 3,000 seats |
Ohio | $5 markup limit on resold tickets |
Pennsylvania | Venues authorized to deny entry to scalped tickets |
Tennessee | Scalping banned for major pro and college sports |
Wisconsin | Reselling home game tickets prohibited without team authorization |
The Rise of Online Ticket Resale
In recent years, the emergence of online ticket marketplaces like StubHub, Vivid Seats, and Ticketmaster has ushered in growing legal secondary ticket sales. Sites like these provide a convenient platform for buyers and sellers looking to exchange tickets closer to event dates. This has brought increasing economic pressure on states to loosen restrictions on ticket resale.
Many states have responded by carving out exceptions for online sales and other forms of legal ticket transfers. For example, New York’s anti-scalping law does not apply to ticket sites approved by the original event host. Still, significant consumer protections remain in states like New York against predatory street scalping.
Practical Enforcement of Scalping Laws
Despite scalping laws on the books, enforcement poses challenges in many states. It is resource intensive for police to monitor scalping activity outside venues. Many buyers are also unaware of state ticket regulations when purchasing from street sellers or online.
High-profile events like playoff games or New York concerts see more active enforcement efforts. But for the vast majority of events, there is modest policing of scalping behavior. Economic arguments against scalping bans have also grown with the online secondary ticket market now firmly established.
Nonetheless, these longstanding laws still serve to deter blatant for-profit scalping to some degree in states like New York. Most economists, though, argue that market forces and consumer education may be more suitable than rigid scalping bans for governing ticket sales.
The Future of Anti-Scalping Laws
Scalping laws have endured decades of debate between economists and consumer advocates. But the rapid innovation in online ticket sales will continue to reshape this landscape. A key question is whether consumer protections are still necessary in a world of vibrant online ticket exchanges.
States that retain scalping bans may focus enforcement on street scalping outside venues rather than trying to police the entire secondary market. New policies around price caps and transparency may also replace outright scalping bans in some states. Last-minute sales could see continued scrutiny over high markups.
For now, consumers should be aware of basic scalping restrictions in their state. But the long-term future likely involves relaxed bans balanced against consumer education around fair ticket pricing. This will largely let market forces dictate ticket resale prices in most scenarios.
Conclusion
Ticket scalping remains controversial, with 15 states maintaining some level of restrictions against excessive resale profits. Common scalping practices like using ticket bots or selling just outside venues frequently get prohibited. Many economists counter that scalping allows prices to reflect true supply and demand.
New York, Connecticut, North Carolina and a few other states have the most rigid anti-scalping laws. But the growth of online ticket sales has started to undermine the practical enforcement and consumer logic behind scalping bans. States may adapt with narrowly targeted protections against exploitation. But the days of widespread scalping prohibitions appear numbered as online secondary markets become more robust.