What is the punishment for scalping?

Scalping is the practice of purchasing tickets to events with the sole intention of reselling those tickets at a higher price. This often leaves fans unable to get tickets at face value and forces them to pay inflated prices if they want to attend an event. Scalping is illegal in many jurisdictions, though the exact laws and punishments vary.

Is scalping illegal?

Scalping is illegal in many places, though some jurisdictions allow it with certain restrictions. Often it is illegal to sell tickets above face value or in certain areas near an event venue. Scalping laws vary widely across states, cities, and venues. Some key facts on the legality of scalping:

• At the federal level, there are no laws in the United States banning ticket scalping.
• Many states have laws restricting or banning ticket scalping. Some ban it outright, while others restrict resell prices.
• Cities, venues, and event promoters often have their own rules prohibiting scalping.
• Scalping is illegal in some form in around 30 states. The exact laws vary significantly.

So in summary – scalping is illegal in many places, but not universally banned. The punishments and details depend on the local laws.

Punishment for scalping tickets

For places where scalping is illegal, there are a variety of potential punishments for those caught reselling tickets. Common punishments include:

• Fines – Fines for scalping are often in the range of $100 to $1000, though some areas impose fines up to $25,000.
• Jail time – Some anti-scalping laws include potential jail time for violations. This is more common with large-scale operations than individuals.
• Seizure of profits – Authorities may confiscate any profits made from scalping as punishment.
• Seizure of tickets – Illegally scalped tickets may be seized by police.
• Loss of license – For ticket brokers, violating scalping laws may result in loss of necessary business licenses.
• Community service – Some convictions call for violators to perform community service.

The exact punishment depends on the laws in a given jurisdiction and the severity of the offense. Most often, small-time scalpers will face just a fine. Large operations and repeat offenders may have additional penalties. Prosecution is rare for casual violations, with authorities focused on organized scalping.

Notable scalping punishments and fines

Some recent examples of punishments for ticket scalping:

• In 2016, the Better Business Bureau handed out $10,000 fines to two ticket brokers accused of scalping Bruno Mars concert tickets in Honolulu, Hawaii.
• New York fines ticket scalpers $500 plus $100 per ticket for scalping tickets to events at arenas like Madison Square Garden.
• North Carolina can impose fines of $3,000 per incident of ticket scalping under state laws.
• A 2013 anti-scalping law in Minnesota allows fines up to $1,000 per violation.
• In the UK, penalties were increased to unlimited fines for ticket scalping in 2018 under the Consumer Rights Act.

These examples show fines ranging from a few hundred dollars for individuals to unlimited fines for larger operations. The crackdown on scalping varies across different jurisdictions.

Scalping laws by state

Here is an overview of scalping laws and punishments in some key US states:

This summarizes some of the major anti-scalping laws. Many states allow local municipalities to implement their own rules. The details vary widely from outright bans to more limited restrictions.

Has anyone ever been arrested for scalping?

There have been some notable arrests for illegal scalping over the years. Some examples:

• In 2009, more than 20 people faced charges in an Ohio crackdown on scalping concert tickets. Some plead guilty to misdemeanor charges.
• A 2017 undercover investigation in Arizona led to 10 arrests for sport and concert ticket scalping violating local laws.
• 22 ticket scalpers were arrested near the 2021 Super Bowl in Florida after an undercover sting operation.
• In Canada in 2013, a massive bust stopped a large-scale nationwide ticket scalping operation and resulted in over two dozen arrests.

These arrests often target large scalping operations in violation of local laws. Casual scalpers typically won’t face arrest, but major offenders may face criminal charges for systematically violating scalping laws. Arrest is more likely if they are repeat offenders who continue to scalp tickets in prohibited areas.

Famous cases of prosecuted scalpers

Some high-profile examples where ticket scalpers faced major charges and fines:

• In 2011, the owner of Wiseguy Tickets was fined $3.4 million for a large ticket scalping operation violating New Jersey law.
• After a 1996 Grateful Dead tour bust, a scalper faced up to 20 years in prison before settling his case.
• A 2007 Las Vegas scalping scheme saw the ringleader sentenced to up to 10 years in prison and over $20,000 in fines.
• In England in 2014, a prolific scalper known as “Terry the Ticket” received a suspended jail sentence.

These cases involved scalpers who systematically violated local scalping laws over long periods. Their large operations and repeated offenses resulted in heavy charges once prosecuted. These serve as warnings for major scalping enterprises.

Can you get arrested for scalping on the street?

It is possible to get arrested for scalping tickets on the street, but arrests tend to target larger operations. Here is some context on street scalping:

• Many anti-scalping laws specifically prohibit on-the-street sales near venues.
• Street scalping often violates local vending laws requiring a permit or license.
• Undercover police sometimes conduct stings catching street scalpers in the act.
• But arrests are rare for one-off street sales by individuals without a pattern of violations.
• Police focus limited resources on larger organized scalping rings rather than casual sellers.

So an isolated case of street scalping likely will just result in ticket seizure or a warning. But repeat offenders increasingly risk arrest or misdemeanor charges. The laws are primarily enforced against systematic illegal street vending operations.

Can you go to jail for using bots to buy tickets?

There is some risk of jail time for using ticket bots, though enforcement is limited:

• It is a federal crime punishable by up to 1 year in prison under the BOTS Act of 2016.
• However, charges require proving intentional and large-scale bot use.
• Only a few people have faced charges since 2016 for bot violations.
• Casual small-time bot users are very unlikely to be prosecuted.
• The laws are meant more as a deterrent than for widespread enforcement.

The severity of punishment depends on the scale and intent behind bot activities. Major commercial operators could theoretically face prison, but individual bot users likely at most would just have tickets canceled or face civil suits.

Scalping on Native American reservations

Native American reservations operate outside the jurisdiction of state and local scalping laws, creating a loophole:

• Scalping often thrives on reservations near major events due to looser regulations.
• For example, reservations near the Super Bowl or Coachella host rampant scalping.
• Tribal sovereignty means local anti-scalping laws cannot be enforced on reservation land.
• Some reservations have implemented their own restrictions, but enforcement is sporadic.
• Native American vendorsjustify scalping based on regulations being imposed unjustly on them historically.

This “sovereign immunity” makes reservations a prime location for scalpers to operate openly. Events nearby see huge scalping markets emerge without fear of punishment under state or city laws.

International scalping laws

Scalping laws also vary widely between countries:

• Scalping is banned in many European countries like Italy, Belgium, Denmark.
• Penalties range from fines in France to up to a year in prison in Hungary.
• China banned scalping with fines over $30,000 and potential jail time.
• In Hong Kong, scalping can lead to fines of $25,000 and up to 3 years in prison.
• Some places like Germany and Mexico have no scalping laws at all.
• International events like the Olympics take a tough stance, destroying scalped tickets.

Enforcement against scalping globally is inconsistent. Major events like the World Cup and Olympics prohibit the practice, but many countries lack scalping laws entirely. Fines and potential jail time serve as deterrents where bans are in place.

Should scalping be illegal?

There are reasonable arguments on both sides of whether scalping should be illegal:

Arguments for banning scalping:

• Scalping shuts regular fans out of events by driving up prices.
• It encourages hoarding tickets only to profit off them.
• Artists and venues lose out when tickets go to scalpers instead of real fans.
• Scalping often relies on unethical practices like bots to horde tickets.

Arguments against anti-scalping laws:

• Tickets are assets that scalpers have the right to resell at market value.
• Scalping provides a way for fans to still get tickets at higher prices.
• Eliminating scalping means no tickets available at all when events sell out.
• Laws are hard to enforce and limit market forces setting prices.

There are good-faith positions on both sides of this issue. But the clear trend is toward more regulation of scalping to protect consumers and prevent exploitation.

Conclusion

Scalping remains a contentious issue, though more jurisdictions are passing laws against egregious practices. Exact regulations and punishments vary widely, making the legal risks uncertain. But arrests and prosecutions focus mainly on systematic large-scale operations in violation of local laws. Casual small-time scalpers likely face minimal legal risks in most places, though the ethical and public relations issues persist. Careful attention to local scalping laws is advised for anyone considering reselling tickets for profit.