Reselling event tickets, otherwise known as “scalping,” is not against the law. Before StubHub launched, its founders hired a legal team to research the intricacies of the secondary ticket market. While it is often illegal to resell tickets in the immediate vicinity of most venues (to protect event-goers from con artists), other trading methods are acceptable.
In about 38 states, including California, there are no meaningful restrictions. A scalper can resell a $50 football ticket for $500, so long as he or she keeps away from the arena on game day.
In 12 states, secondary tickets are regulated—as, say, liquor sales might be. In about half those states, including Illinois, ticket brokers that take inventory (StubHub does not) must register with the state. This protects consumers from fly-by-night brokers who could disappear once you’ve given them your credit card information.
In the remaining six states, including New York, tickets cannot be resold above a maximum price premium. A broker might be allowed to charge 20 percent more than the ticket’s face value, but no more. StubHub handles its sales in these states the same way newspaper classified-advertising departments do—it’s up to the seller to obey local laws.
