The practice of reselling tickets for concerts, sports events, and other live entertainment performances at prices above face value is commonly known as ticket scalping. The origin of the term “scalping” dates back centuries and refers to the historical practice of taking the scalps of enemies as trophies during warfare. Over time, the meaning evolved into a slang term referring to making a small profit off of something in an opportunistic way. When applied to the ticket resale market, “scalping” refers to buyers purchasing tickets with the sole intention of reselling them at a higher price to make a profit. Though the exact origin is unclear, ticket scalping has been prevalent since the advent of commercialized live entertainment events in the 19th century.
What is ticket scalping?
Ticket scalping refers to the resale of tickets at prices above their original face value. Scalpers aim to profit by buying tickets when they first go on sale from the official ticket seller, often utilizing special tools and techniques to gain an advantage over the general public. They then resell those same tickets at considerable markups once shows sell out or demand increases on the secondary market. This allows scalpers to generate profits from the difference between the original ticket price and resale price.
Though sometimes associated with shady black market dealings, many ticket scalping transactions today take place online through high-profile resale sites and marketplaces. These provide a centralized platform for scalpers to connect with willing buyers. Major ticket resale sites like StubHub and Vivid Seats have brought more transparency and legitimacy to ticket scalping compared to the past image of scalpers standing outside venue box offices. However, the practice remains controversial as it inflates costs for fans and circumvents rules and availability limits set by official ticket sellers.
When did ticket scalping start?
Ticket scalping has been around since at least the 19th century as the popularity of commercialized entertainment events took hold. In 1897, anti-scalping laws were introduced in New York requiring ticket resellers to be licensed. This indicates scalping was already a persistent issue at the time worth legislating against.
Some of the earliest documented examples of ticket scalping come from the 1920s and 1930s during the golden age of Broadway theater in New York City. The limited seating and huge demand to see popular shows created opportunities for ticket brokers to hoard up seats and sell them to wealthy patrons at inflated prices. This allowed the business of ticket scalping to thrive around major theater hubs and entertainment districts.
The practice expanded with the rise of movies, professional sports leagues, and rock and roll concerts starting in the mid-20th century. There was high demand to see stars like Elvis Presley and the Beatles perform live and limited venues that could accommodate the crowds. Similarly, sporting events like the World Series and Super Bowl gained such popularity that demand far exceeded the supply of seats. These conditions allowed scalpers to gain a foothold by monopolizing the limited ticket supply and catering to those willing to pay more to attend.
Why is it called scalping?
The exact origin of using the term “scalping” to refer to ticket resales is unclear, but it grew out of the prior usage of “scalping” to mean obtaining profits opportunistically. This slang meaning derived from the historical associations of scalping with Native American warfare practices. During conflicts between Native Americans and European settlers from the 17th to 19th centuries, some Native American warriors would take the scalps of their enemies as battle trophies. European colonists viewed this as a barbaric act and “scalping” emerged as a term referring to obtaining quick profits unscrupulously.
Over time, the meaning broadened to refer to making a small profit off of any transaction through cunning means rather than violence. Ticket resellers opportunistically profiting off of ticket scarcity and demand seemed to fit this idea of scalping as crafty profiteering. The two markets likely overlapped somewhat, as ticket brokers at sporting events and theaters sometimes literally did “scalp” tickets outside of venues by selling them quickly to patrons on the streets. So the parallel between profiting from battle trophies and profiting from ticket resales appeared apt to those who coined the “ticket scalping” terminology.
The fact that ticket scalping emerged as a form of opportunism also contributed to the negative connotations of the term from its origins. Ticket prices were meant to be fixed, so those circumventing the rules to flip tickets for profit were viewed similarly to profiteers and scam artists. This perception persists today among those who feel scalpers unfairly manipulate systems at the expense of ordinary fans. The origins of “scalping” capture this tension around the ethics and legality of the practice that remains contentious.
How does ticket scalping work?
There are a few key steps and strategies ticket scalpers employ to buy and resell tickets:
Obtain tickets when they first go on sale
Scalpers want to secure tickets in bulk as early as possible. This may involve special tools to gain an advantage:
– Bots – Automated ticket-buying bots can purchase tickets quicker than humans
– Pre-sale codes – Scalpers try to get pre-sale passwords from fan clubs or sponsors
– Multiple accounts – Opening multiple accounts allows scalpers to exceed ticket limits
Getting tickets during the initial sale ensures scalpers have inventory before it sells out.
Resell tickets as demand increases
Once tickets sell out from the official source, scalpers can raise prices on the secondary market. Major factors include:
– Event popularity – More demand means scalpers can charge more
– Market rate – Scalpers research what price the market will bear
– Timing – Prices often peak right before the event occurs
– Supply and demand – Scarcity raises prices
Use online ticket marketplaces
Online resale platforms like StubHub provide a centralized marketplace for scalpers to connect with buyers willing to pay inflated prices. This makes scalping easier and more transparent compared to past street dealings.
Take advantage of loopholes and lax regulation
Anti-scalping laws are rarely enforced. And tricks like using multiple credit cards and accounts make enforcement difficult. This allows scalpers to operate in the open with minimal legal risk.
Why is ticket scalping controversial?
There are a few key reasons ticket scalping remains a controversial practice:
It inflates costs for fans
Scalping drives up prices, sometimes to many times the original face value. This prices out fans and makes tickets unaffordable. Critics see it as an unfair cash grab off of people’s enthusiasm.
It circumvents ticket limits and rules
Scalpers use technical tricks to bypass ticket purchase limits, reserved seats for fan club members, and other rules. This gives them an advantage over the general public.
It costs the performers and venues money
The original ticket sellers lose out on profit that gets redirected to scalpers. Scalping also reduces their control over pricing and distribution.
It encourages shady behavior
While modern online markets have reduced some unlawful practices, scalping still fosters bot usage, account fraud, and disregard of regulations.
It blocks ordinary fans from getting seats
Scalpers gobble up ticket supplies immediately, making it harder for genuine enthusiasts to obtain seats at regular prices. This violates the spirit of fair access.
So while scalpers provide a secondary market for tickets, they do so through methods considered unfair and exploitative by critics. The business incentives around quick profits remain at odds with fan interests.
Is ticket scalping legal?
The legality of ticket scalping depends on the jurisdiction:
Illegal
Some states like New Jersey and Arkansas have bans on reselling tickets above face value or without a license. Strict limits make scalping illegal.
Legal
Many states like California, Florida, New York legalized scalping, recognizing the right to resell as private property. But restrictions may apply.
Selectively legal
Some states permit reselling tickets at above face value but with conditions, like distance from venues or license requirements. This is a middle ground approach.
While technology has enabled scalpers to circumvent enforcement, outright bans are difficult to enforce given the widespread nature of the practice online. Regulation has generally moved toward a relatively open market with disclosure requirements as a compromise. But the debate continues around finding the right approach to balance business freedom against consumer protection.
Does ticket scalping have any benefits?
Some argue ticket scalping provides the following benefits:
It expands access for sold out shows
Scalpers provide a secondary supply of tickets to fans who missed the initial sale. This gives more chances to attend hot shows.
It signals pricing levels responding to demand
Higher resale prices indicate which events are most in demand. This useful market data helps set optimal pricing.
It supports a free market
Banning scalping would restrict freedom of individuals to resell legal property bought at market rates. Scalping is just open price negotiation.
It eliminates waste from unsold inventory
Scalpers put unwanted tickets to use that otherwise may have gone unsold. This promotes fuller venues.
However, these potential benefits rely on efficient market assumptions that overlook downsides like unfair practices and inflated costs borne by consumers. Scalping offers convenience but often through coercion rather than a fully free market.
How is ticket scalping evolving?
Some recent evolutions shaping ticket scalping include:
Use of bots is increasing
Scalpers are using more automated ticket buying bots that purchase tickets faster than humans could. This squeezes supply.
More robust anti-bot efforts by sellers
Ticket sellers try to counter bots through CAPTCHAs, numbered queues, and other verification techniques with mixed success.
Consolidating around large resale platforms
StubHub, Vivid Seats and other big marketplaces now host the lion’s share of scalper inventory online. Smaller outlets have diminished.
Limited breakthroughs on enforcement and regulation
Efforts to update anti-scalping laws have stalled. And persistently high scalped prices indicate limitations of enforcement.
Shifting public perceptions
Younger fans accustomed to paying premium prices through scalpers continue fueling the practice as norms shift.
In the cat and mouse game between scalpers, regulators, and fans, the business continues thriving online through evolving tactics. But greater awareness of downsides has renewed focus on more balanced policies.
Conclusion
The origins of the term “ticket scalping” lie in opportunistic profiteering, dating back over a century to early ticket resale practices. Scalping persists today despite controversy over increased prices and unfair tactics that restrict fan access. While the internet has fueled scalping growth through platforms like StubHub, it has also facilitated greater awareness of its customer impacts. This has led to some evolution in regulation but limited progress reducing scalping incentives in a largely legal market. As technology continues shifting the playing field among scalpers, sellers, and buyers, the future direction remains contested ground with a better balance of fairness and business freedom sought under evolving norms.
