Ticket scalping, also known as ticket touting, is the act of reselling tickets for profit above their original face value. Many states have laws restricting or prohibiting ticket scalping, while other states have no anti-scalping regulations. The legality of ticket scalping varies widely depending on the jurisdiction.
What is Ticket Scalping?
Ticket scalping refers to the resale of tickets to events, shows, concerts etc. for a price higher than the original face value printed on the ticket. Scalpers will often obtain large numbers of tickets through special relationships, software, or by hiring people to buy tickets when they go on sale. These tickets are then resold through secondary ticket marketplaces, auction sites, classified ads or in-person outside the venue. Scalpers profit by charging substantially higher prices due to increased demand from fans who were unable to purchase tickets at face value.
Although ticket scalping has a long history, the advent of online secondary ticket marketplaces like StubHub and Vivid Seats in the early 2000s made scalping much more profitable and widespread. Fans can easily resell extra tickets, while large-scale operations can offload thousands of tickets. The increased convenience and profitability made possible by the internet has led more states to consider legislation banning or restricting the practice.
Ticket Scalping Laws by State
There is no federal law in the United States prohibiting ticket scalping, so state laws govern the legality of the practice. Often these laws only restrict scalping tickets at the venue itself, while allowing sales through online marketplaces. Some states have no anti-scalping laws at all. The table below summarizes the current status of ticket scalping laws in each state:
| State | Scalping Illegal? | Details |
|---|---|---|
| Alabama | No | No law restricting scalping |
| Alaska | No | No law restricting scalping |
| Arizona | No | No law restricting scalping |
| Arkansas | No | No law restricting scalping |
| California | Yes | Illegal to sell tickets within 1,500 feet of an event venue on event day, if the seller does not possess a vendor permit from the city/county |
| Colorado | No | No law restricting scalping |
| Connecticut | No | No law restricting scalping |
| Delaware | No | No law restricting scalping |
| Florida | No | No law restricting scalping |
| Georgia | No | No law restricting scalping |
| Hawaii | No | No law restricting scalping |
| Idaho | No | No law restricting scalping |
| Illinois | Yes | Illegal to sell tickets for over face value within 1,500 feet of a venue with over 15,000 person capacity |
| Indiana | No | No law restricting scalping |
| Iowa | Yes | Illegal to sell tickets for over face value within 1,500 feet of a venue |
| Kansas | No | No law restricting scalping |
| Kentucky | No | No law restricting scalping |
| Louisiana | No | No law restricting scalping |
| Maine | No | No law restricting scalping |
| Maryland | No | No law restricting scalping |
| Massachusetts | Yes | Illegal to resell tickets for over $2 above face value without a license |
| Michigan | No | No law restricting scalping |
| Minnesota | No | No law restricting scalping |
| Mississippi | No | No law restricting scalping |
| Missouri | No | No law restricting scalping |
| Montana | No | No law restricting scalping |
| Nebraska | No | No law restricting scalping |
| Nevada | No | No law restricting scalping |
| New Hampshire | No | No law restricting scalping |
| New Jersey | No | No law restricting scalping |
| New Mexico | No | No law restricting scalping |
| New York | Yes | Illegal to resell tickets within 1,500 feet of a venue unless the seller is an authorized vendor |
| North Carolina | No | No law restricting scalping |
| North Dakota | No | No law restricting scalping |
| Ohio | No | No law restricting scalping |
| Oklahoma | No | No law restricting scalping |
| Oregon | No | No law restricting scalping |
| Pennsylvania | No | No law restricting scalping |
| Rhode Island | No | No law restricting scalping |
| South Carolina | No | No law restricting scalping |
| South Dakota | No | No law restricting scalping |
| Tennessee | No | No law restricting scalping |
| Texas | No | No law restricting scalping |
| Utah | No | No law restricting scalping |
| Vermont | No | No law restricting scalping |
| Virginia | No | No law restricting scalping |
| Washington | No | No law restricting scalping |
| West Virginia | No | No law restricting scalping |
| Wisconsin | No | No law restricting scalping |
| Wyoming | No | No law restricting scalping |
Key Takeaways
Here are some key points to understand about the legality of ticket scalping in the United States:
- There is no federal law prohibiting ticket scalping – it is regulated at the state level.
- The majority of states (38) do not restrict ticket scalping at all.
- Only around a dozen states have anti-scalping laws, focused on restricting sales near event venues without a vendor permit.
- Many anti-scalping laws only apply on the day of an event, or for very large venues.
- Online ticket resales are generally not prohibited, even in states with anti-scalping laws.
- Some major cities like New York and Los Angeles have local scalping ordinances that are stricter than their state’s laws.
- Penalties for violating ticket scalping laws range from confiscation of tickets to fines and possibly criminal charges.
In general, ticket scalping laws in the U.S. are fragmented and rarely enforced for online sales. The growth of the secondary ticket market has made most attempts at regulating scalping very difficult in practice. However, fans should still be aware of local anti-scalping ordinances, especially when purchasing tickets right before or at the venue on the day of an event.
The Secondary Ticket Market
The prevalence of online secondary ticket marketplaces like StubHub and Vivid Seats has fundamentally changed the ticket scalping industry. What was once a shady, cash-based business centered around ticket brokers outside venues has become a billion-dollar digital industry. In many respects, major ticket resellers have been embraced both by fans who want more options for buying tickets, and artists and teams who split revenues from secondary sales.
However, sky-high markups on in-demand tickets through secondary sellers remains controversial. Some teams and artists like Taylor Swift have tried to combat this by using strict ID checks and ticket transfer limits. But as long as tickets are in high demand and short supply, a profitable secondary market persists.
For fans, the convenience of services like StubHub make buying previously unavailable tickets easy. But patrons should be aware of major markups compared to face value. Savvy buyers compare prices across multiple exchanges to get the best deal.
Pros of the Secondary Market
- Greater availability for high-demand tickets
- More options and price points for fans
- Easy to use online marketplaces
- Helps avoid dealing with shady scalpers in person
Cons of the Secondary Market
- Huge markups over face value
- Rewards large scalping operations over individual fans
- Artists, teams and promoters miss out on revenue compared to primary sales
- Does not prevent fake or invalid tickets
While the internet has changed ticket scalping, the core practice of exploiting demand to resell tickets remains controversial. But as long as people are willing to pay well above face value, the secondary market is likely here to stay.
Conclusion
Ticket scalping laws vary widely across the United States, but the internet has made most state and local restrictions difficult to enforce. Only around a dozen states prohibit in-person sales near event venues without a vendor permit, while online resellers face very few regulations. The continued growth of massive secondary ticket marketplaces like StubHub is responsible for keeping scalped tickets readily available nationwide regardless of local laws. For consumers, it remains important to understand applicable anti-scalping ordinances, but online there are few limits on premium resale prices as long as buyers are willing to pay the high markups.
