Scalping, also known as ticket reselling, is the practice of purchasing tickets to events like concerts, shows, or sports games with the intent to resell them at a higher price for profit. While some see it as an entrepreneurial pursuit, others view scalping as unethical, especially when tickets are sold at massively inflated prices. So can you actually get in trouble for scalping tickets? Let’s take a closer look at the legalities and ethics involved.
Is scalping illegal?
Whether or not scalping is illegal largely depends on local and state laws. In many places, scalping is illegal if done in certain areas or above certain ticket price thresholds. Some states like New York have banned ticket scalping altogether, with those caught reselling tickets facing potential fines or even arrest. The exact laws vary widely across different states and cities.
State | Scalping Laws |
---|---|
New York | Scalping is illegal and can result in fines up to $1,000 per ticket. |
California | Scalping is illegal within 100 yards of a venue. |
Florida | Scalping is legal, with some municipal restrictions. |
Texas | Scalping is legal, with some restrictions in certain cities. |
Some states like Florida and Texas have relatively few restrictions on ticket resales. However, most states regulate scalping in some way, whether setting limits on resale prices or restricting where tickets can be resold. Many ticket resale sites like StubHub comply with local regulations, meaning sellers on those platforms should be in the clear legally if following site guidelines.
Can venues enforce their own scalping policies?
Yes, venues and event organizers often prohibit ticket scalping through their own internal policies. Language may be printed on the tickets themselves restricting resales. Venues can threaten to deny entry to anyone trying to use scalped tickets. Some major ticket sellers like Ticketmaster also prohibit ticket resales except through approved exchanges like their own Ticketmaster Resale site.
However, the enforceability of these policies is questionable. Once a ticket is purchased, it becomes the property of the ticket holder to use or resell as they see fit. Still, by adding scalping restrictions, venues create obstacles and uncertainty that can discourage the practice.
What about online ticket resale sites?
Most online ticket marketplaces operate legally and are generally not liable for scalping done by individual sellers. As long as they comply with state ticket laws, sites like StubHub and Vivid Seats provide a platform where owners can resell event tickets at market value. However, some states prohibit the use of bots to buy up tickets. Alabama recently banned sites that don’t try to prevent bot purchases.
Some major ticket sellers like Ticketmaster have their own resale exchanges to try to capture back market share. These exchanges better allow venues to control distribution and pricing. But outside of those controlled environments, independent resale sites facilitate a speculative secondary market driven by supply and demand.
Is ticket scalping unethical?
Though often legal, many view scalping as unethical. Critics argue it exploits both venues and consumers. Venues miss out on revenue when tickets are marked up substantially above face value. It prices regular fans out of the market for hot shows and games. The practice favors speculators just looking to make a buck over genuine fans.
However, ethics are subjective. Some view scalping as simply an entrepreneurial pursuit taking advantage of market conditions. Willing buyers still choose to pay marked-up prices. And fans who can’t buy at pre-sale prices still have the option to purchase tickets, albeit at inflated costs. Scalping provides liquidity and gives owners a way to conveniently recoup costs for unused tickets.
Arguments Against Scalping:
- It jacks up prices artificially when tickets are limited.
- Genuine fans get priced out of seeing their favorite performers or teams.
- Artists and venues lose out on revenue that goes to scalpers instead.
- It encourages speculation over sincerity and enthusiasm.
Arguments Defending Scalping:
- It allows fans who missed out on sales a second chance to buy tickets.
- Owners can easily recoup money rather than let tickets go unused.
- It provides pricing transparency in a limited market.
- As long as buyers willingly pay, sellers are just seizing market opportunities.
The impact of scalping on consumers
Scalping undoubtedly inflates ticket prices, sometimes to outrageous levels for hot shows or playoff games. Average consumers without flexible budgets often get priced out of the market. Some may still choose to pay the higher costs, perhaps if it’s a once-in-a-lifetime event. But for many, the inflated prices make tickets unaffordable.
Fans can also feel resentful seeing scalpers profit from what they view as unfair market manipulation. The kids who just want to see Taylor Swift get punished while speculators cashing in could care less about the music.
On the other hand, without a secondary market some tickets would never be resold at all. Owners who can’t attend would eat the costs. Scalping does provide consumers another avenue to find tickets, though at higher prices. Sites like StubHub offer buyer protection against fraud as well.
Impact on venues and performers
Venues, performers, and sports teams rely on ticket sales for a huge portion of event revenue. When scalpers insert themselves as middlemen, that cuts into profits. Margins on the initial ticket sales are lower so scalpers can mark them up higher. An arena concert that could have brought in $500,000 might make only $400,000 after scalpers resell a portion of seats.
Artists and venues try methods like requiring ID or credit card purchase to cut down on scalping. Performers sometimes price premium seats artificially high to capture more value. But for very hot events, scalping still siphons off substantial potential revenue.
However, for undersold events scalping can be beneficial. Tickets may sell out that otherwise would have gone empty without a secondary market. Having tickets available at any price is better for venues than unsold seats.
Ways for venues and fans to avoid scalping
If scalping poses a big problem, venues can take active steps to discourage or restrict it:
- Enforce strict ticket purchasing limits per customer.
- Require ID, credit card, or mailing address to match tickets.
- Use paperless/digital ticketing requiring ID checks at entry.
- Allow ticket transfers only through approved site like Ticketmaster.
- For high demand events, use auction or dynamic pricing.
For fans, tips include:
- Buy during presales or waiting periods to get face value.
- Use fan club memberships or verified fan programs for early access.
- Avoid buying from street scalpers to discourage the practice.
- Wait closer to event date as prices sometimes fall.
Though impossible to prevent outright, these practices can help mitigate the effects of scalping.
The future of ticket scalping
Despite the controversy, scalping remains embedded as part of the ticket marketplace. Major sites provide easy access and buyer protection that will maintain secondary markets. As long as high demand events exist, scalpers will capitalize on opportunities to flip seats.
However, technology and practices like digital ticketing could cut down on some scalping. Secondary markets may shift to more controlled environments like Ticketmaster’s exchange. Venues will likely ramp up efforts to capture resale value themselves.
It’s also possible scalping declines if supply meets demand better. More concerts or games, or bigger venues, reduces scarcity that speculators rely on. Subscriptions and bundling could provide fan access without limits.
Ultimately scalping succeeds because of supply and demand imbalances. Better aligning those forces offers the best path to curbing the practice in the long-run.
Conclusion
Scalping remains in a legal gray area, with laws varying widely between states. Though some view it as unethical, scalping exists because it’s profitable. Venues and fans alike get frustrated by marked-up prices that benefit resellers. But technology and greater supply may gradually reduce scalping over time. Committed fans and event organizers will need to be proactive to limit its impact. Though unlikely to disappear entirely, scalping may diminish as a presence with the right policies and market adjustments in place.