Scalping tickets refers to the reselling of event tickets, often at prices well above face value. Those who engage in this practice are known as ticket scalpers or touts. Some key examples of ticket scalping include:
Reselling tickets for sporting events
One of the most common examples of scalping is with tickets to major sporting events like the Super Bowl, World Series, NBA Finals, and more. These events often sell out quickly, creating high demand on the secondary market. Scalpers will try to buy up tickets when they first go on sale and then resell them at a large markup once the event sells out.
For instance, the average price for a Super Bowl ticket in 2022 was around $6,700 on secondary market sites like StubHub. That’s compared to the usual face value price of $500-600 for a typical Super Bowl ticket directly from the NFL. So scalpers were able to charge over 10X the original price!
Reselling tickets for concerts
Concert tickets are another major target for scalpers. Similar to sporting events, concerts for major pop stars like Taylor Swift or legacy rock bands like the Rolling Stones will sell out fast. Savvy scalpers will try to acquire as many tickets as possible upon release to then resale at big markups.
For example, when Taylor Swift announced her “Reputation” stadium tour in 2018, tickets that originally sold for $150 were being resold for over $800 each on secondary sites. Concerts with pent up demand can lead to even more dramatic scalping markups.
Scalping tickets for Broadway shows
Broadway musicals and plays in New York City are infamous for ticket scalping issues. The limited seating capacities and strong demand makes Broadway a prime opportunity. Resellers will acquire premium seats ahead of time and then charge 2-3X the box office prices.
For instance, tickets to see the hit musical “Hamilton” routinely sold for over $1,000 from scalpers when the face value price was $199. The ravest reviews and popularity drove up resale prices to astronomical levels.
Reselling “sold out” event tickets
One of the clearest examples of scalping is when an event completely sells out. Whether it’s a concert, sporting event, festival, or anything else, “sold out” means demand exceeds supply. This creates the perfect opportunity for scalpers to charge extreme premiums on any tickets they can still acquire.
Often these sold out event tickets can sell for many multiples above face value. For example, when Adele announced her first concert tour in years in 2022, tickets that originally sold for $85-$200 were being resold for as much as $15,000 each!
Examples of anti-scalping measures
Over the years, event organizers and ticket sellers have tried various methods to deter or prevent scalping:
- Limiting the number of tickets someone can buy
- Requiring ID/credit card used to purchase to also be shown at venue entrance
- Using paperless/mobile ticketing to make reselling harder
- Cancelling suspected scalper ticket orders
- Having strict resale rules and enforcing violations
However, scalpers have still managed to circumvent many of these attempts. The potential profits to be made continue to incentivize finding ways around anti-scalping efforts.
Why scalping persists
There are several key reasons why ticket scalping remains prevalent despite anti-scalping attempts:
- High resale profit potential – Markups of 2-10X on face value is common. This significant profit motive incentivizes scalpers.
- Arbitrage opportunity – Scalpers are exploiting the gap between box office pricing and what secondary market will bear.
- Limited supply – Many events truly do sell out quickly. Scarcity allows scalpers to charge more.
- Anonymity online – The growth of online resale platforms makes scalping easier to carry out anonymously.
As long as these conditions persist, scalping will likely continue for high-demand events. And while anti-scalping laws exist in some places, they are inconsistently enforced.
Ethical considerations
There are some ethical questions surrounding ticket scalping practices as well:
- It prices some fans out the market, especially for high-demand events.
- Scalpers don’t “add value” – they just acquire and resell tickets.
- It exploits inefficiencies in primary ticket pricing and distribution.
- Some scalpers use “bots” to unfairly buy up ticket supplies.
However, scalpers believe they are simply operating in a free market by availing tickets to those willing to pay. So there are good-faith arguments on both sides of the ethics debate.
Future outlook on scalping
Looking ahead, a few factors could potentially impact scalping activity:
- More paperless/mobile ticketing makes transfers harder
- More dynamic/surge pricing from primary sellers closes arbitrage gap
- More enforcement of anti-scalping laws, where they exist
- Higher initial ticket prices from sellers reduces upside
However, as long as human nature persists and high demand events continue, ticket scalping likely will endure in some form as well. Savvy resellers will adapt to new conditions and seek ways to profit from inefficiencies in the ticket market.
Conclusion
In summary, ticket scalping involves reselling event tickets at prices often well above face value. Prime examples include major concerts, Broadway shows, and especially high-demand sporting events like the Super Bowl. Scalpers exploit supply-demand imbalances, pricing inefficiencies, and anonymity online to earn large profits. Attempts to curb scalping have seen mixed results, as profits remain substantial. While controversial from an ethical standpoint, scalping seems likely to persist as long as the potential upside outweighs the risks.