Ticket scalping refers to the resale of tickets, often for popular events like concerts or sports games, at prices higher than their original face value. Many states have laws regulating or restricting ticket scalping in order to protect consumers and prevent predatory pricing practices. Understanding which states have ticket scalping laws can help event organizers, ticket resellers, and consumers stay compliant and make informed decisions.
What is ticket scalping?
Ticket scalping is the practice of reselling tickets for more than their original face value. Scalpers will often buy up large quantities of tickets to popular events and then resell them at significant markups. This allows them to profit from the difference between the original ticket price and the inflated resale price.
Some key aspects of ticket scalping:
– Scalpers focus on reselling hard-to-get tickets to high-demand events like concerts, sports games, and theater shows. Tickets often sell out quickly from the official seller.
– Scalpers may use bots or hire people to buy up tickets in bulk the moment they go on sale. This makes it harder for regular consumers to buy from the official source.
– Scalpers resell the tickets, sometimes mere minutes after buying them, at much higher prices. Markups can be anywhere from a few dollars to several hundred percent of the original price.
– Scalpers operate through secondary ticket marketplaces like StubHub and Craigslist or outside venues on event day.
– Scalping happens without the permission of event organizers andoften means lost revenue for them. The inflated secondary prices can also make events unaffordable for some fans.
Why do states regulate ticket scalping?
There are a few key reasons why many states have enacted anti-scalping laws:
– **Consumer protection** – Scalping limits availability and inflates prices for consumers who weren’t able to buy from the box office. Laws aim to protect fans from predatory pricing.
– **Public interest** – Many see the practice as going against public interest by making events inaccessible to less affluent consumers. There is a desire to keep prices affordable.
– **Level playing field** – Regulations create more equity by preventing automated buying that shuts out the general public from buying at face value.
– **Profit protection** – Scalping diverts revenue from event organizers and teams to third-party resellers. Laws help protect authorized ticket sellers.
– **Preventing criminal activity** – Strict laws deter scalping activity with harsh penalties, preventing fraudulent sales.
However, there are also arguments against scalping laws:
– **Free market** – Some see the laws as interfering with basic supply and demand economics in a free market.
– **Consumer choice** – Although inflated, the secondary market allows consumers more avenues to buy tickets even when official tickets are sold out.
Common types of ticket scalping laws
States take varied approaches in regulating ticket scalping. Some common types of laws include:
– **Price caps** – These laws restrict how much above face value a ticket can be resold for. For example, a law may cap resale prices at 50% above face value.
– **Prohibiting sales near venue** – Some laws ban selling scalped tickets within a certain distance of the venue location. This helps curb predatory day-of-event scalping.
– **Mandatory disclosures** – Scalpers may be required to disclose the original face value when reselling a ticket. This helps inform consumers.
– **Penalizing the use of bots** – Laws specifically target and penalize the use of bots or automated software to unfairly buy up ticket inventories.
– **Registration requirements** – Scalpers may be required to register with a state authority and obtain a license to resell tickets. Unlicensed scalping can warrant penalties.
– **Total bans on scalping** – A handful of states make it outright illegal to resell any ticket above face value and penalize violators. But bans are difficult to enforce.
– **Tax requirements** – Scalpers may be required to comply with tax regulations when reselling tickets as a commercial activity. This can help regulate large-scale scalping.
State-by-state overview
Scalping laws vary widely from state to state. Here is an overview of ticket scalping laws across the United States:
States that ban ticket scalping
A minority of around 8 states have complete bans on any form of ticket scalping above face value:
– Arkansas
– Delaware
– Kentucky
– Michigan
– Minnesota
– Mississippi
– Rhode Island
– Wisconsin
However, many of these bans are rarely enforced in practice. Most states opt for regulation over outright bans.
States with price caps on resale markup
The majority of states impose price restrictions on how much tickets can be resold for as a deterrent to egregious scalping practices. Common caps include:
– 10% above face value – Hawaii, Utah
– 20% above face value – West Virginia
– 25% above face value – Nebraska
– 30% above face value – Tennessee
– 45% above face value – Texas
– 50% above face value – Pennsylvania, Connecticut, New Mexico
States requiring registration or licensing
Some states require scalpers to register with the state or obtain a license in order to resell tickets:
– Florida – Registration required for reselling over $1,000 of tickets annually
– Massachusetts – Registration required for reselling tickets to restricted sporting events or concerts
– Ohio – License required for ticket brokers reselling tickets to any major event
States restricting sales near venues
Many states prohibit scalping within a certain distance from an event venue to deter predatory day-of sales:
– California – Within 1,500 feet of venue
– Minnesota – Within 2,640 feet of venue
– Wisconsin – Within 500 feet of venue
– Pennsylvania – Within 2,500 feet of venue entrance
States requiring ticket disclosures
Some states require scalpers to disclose or advertise the face value of tickets they are reselling:
– California
– Connecticut
– Florida
– New York
– Pennsylvania
– Virginia
– Washington
States banning ticket bot software
A growing number of states now explicitly prohibit the use of ticket bots or bot software to buy tickets:
– Arizona
– Arkansas
– California
– Connecticut
– Florida
– Indiana
– Maryland
– Michigan
– Minnesota
– New York
– North Carolina
– Ohio
– Oregon
– Pennsylvania
– Tennessee
– Vermont
– Virginia
– Washington
– Wisconsin
States with no scalping laws
A minority of states currently have no ticket scalping laws whatsoever. These include:
– Idaho
– Missouri
– New Hampshire
– Oklahoma
– South Dakota
– Wyoming
However, many venues or ticket sellers in these states may impose their own restrictions or terms against scalping.
Other restrictions on ticket scalping
In addition to statewide laws, ticket scalping may be subject to various other restrictions:
– **Local ordinances** – Many cities, towns, or counties impose their own anti-scalping rules and penalties. These may prohibit sales near venues or ban street scalping.
– **Venue or event policies** – Many venues prohibit ticket resale above face value on the premises or deny entry to those with scalped tickets against policy.
– **Ticket issuer terms** – Tickets for certain teams or events may impose terms restricting transfers or resale on the tickets themselves. Violating these terms can allow cancellation of tickets.
– **Temporary bans** – Some states or cities have introduced temporary bans on ticket scalping during major events like the Olympics or Super Bowl to curb scalping.
Penalties for violating ticket scalping laws
States use a variety of penalties to enforce ticket scalping laws, including:
– **Fines** – Fines are the most common punishment, typically ranging from $100 to $1,000 per violation but sometimes as high as $100,000.
– **Seizure of tickets** – Law enforcement may confiscate illegally scalped tickets and prevent resale.
– **Criminal charges** – Violations like using bots may be charged as misdemeanors or felonies, punishable by jail time in some states.
– **Loss of license** – States that require registration may revoke a scalper’s license to resell tickets if violations occur.
– **Cancellation of tickets** – Ticket issuers can cancel season tickets or use other sanctions for policy violations.
– **Civil lawsuits** – Venues, teams, or consumers may be able to sue scalpers for damages related to terms violations.
Are ticket scalping laws effective?
There is debate around how effective anti-scalping laws actually are in practice:
**Arguments laws are effective**
– Deter scalpers from most egregious practices like 1000%+ markups
– Give law enforcement means to penalize unlicensed or fraudulent sales
– Protect consumers from predatory pricing and limited availability
– Prevent scalpers from dominating limited ticket supplies using bots
**Arguments laws are ineffective**
– Difficult for law enforcement to enforce bans fully
– Penalties like small fines are just a ‘cost of doing business’
– Laws lag behind technical exploits like new botnet methods
– Don’t address underlying supply/demand dynamics that enable scalping
– Ticket holders can still resell at moderate markups despite caps
Ultimately most experts argue that some regulation is beneficial, but needs consistent updating to address the evolving scalping industry. Comprehensive approaches combining updated laws, technology prevention, and consumer education are most likely to curb abusive practices.
How fans can avoid ticket scalping
For regular fans looking to buy tickets, here are some tips to avoid scalping and pay reasonable prices:
– Buy early during presales or opening sales before supplies run out. Sign up for fan clubs that get priority access.
– Use official vendor sites and be wary of buying from third parties like Craigslist where fraud is common.
– Consider season tickets or subscription packages for recurring events to lock in face value prices.
– Join venues’ fan clubs, email lists and social media to get special offers and presale codes.
– Avoid buying tickets right before events when prices spike highest on secondary markets.
– Search resale sites for ticket holders selling at reasonable markups closer to face value.
– Avoid street scalpers who often sell counterfeits – only buy from trusted online sellers.
– Politely alert venues or box offices about unlawful sales practices seen locally.
Conclusion
Ticket scalping laws seek to regulate the common practice of reselling event tickets at inflated prices. Specific laws vary widely from state to state but often involve price caps, licensing rules, venue restrictions, disclosure requirements, and bot bans. Penalties for violations can include fines, confiscation of tickets, criminal charges, and revoked reseller licenses. However, enforcement of scalping laws remains a challenge. For consumers, buying early from official sources, researching resale sites’ market prices, and avoiding predatory day-of-event sales are good ways to get reasonable deals and avoid being scalped.