How Scalping Became a Cultural Scourge

Scalping Extends Beyond Concerts to Restaurant Reservations, Prompting Calls for Reform

The bloated resale economy is increasingly affecting sectors beyond concerts, including restaurant reservations, DMV appointments, and public amenities, sparking calls for reform. As transactions have moved online, scalpers have adapted, using bots to snap up reservations and tickets, often reselling them at exorbitant markups.

In New York, a bill targeting unauthorized resales of restaurant reservations has passed the legislature and awaits Governor Kathy Hochul’s approval. Platforms like Resy and OpenTable facilitate reservations, but scalpers have exploited these systems, reserving tables at popular restaurants with bots and reselling them for $50 to $1,000. Melissa Fleischut, CEO of the New York State Restaurant Association, notes that these practices harm both businesses and consumers, with some restaurants reporting no-show rates as high as 30%.

The issue mirrors the chaos during ticket sales for Taylor Swift’s 2022 Eras Tour, when scalpers purchased large quantities of tickets, reselling them at prices up to 70 times their face value. The fiasco led to renewed scrutiny of Ticketmaster and its role in exacerbating scalping, particularly as the platform faced an antitrust investigation.

While some economists, like Columbia University’s Dan O’Flaherty, argue that ticket reselling reflects market forces, businesses and consumers often bear the costs. Restaurants lose revenue from no-shows, staff lose tips, and consumers face inflated costs. For example, Semma, a Michelin-starred restaurant in New York City, had to implement upfront deposits after rampant scalping led to numerous cancellations using fake or empty credit cards.

To address these issues, policymakers and industry leaders are pushing for stronger regulations. The federal BOTS Act of 2016 was designed to curb bot-driven ticket purchases, but advocates argue it needs to be strengthened. Proposals like the Fans First Act and the TICKET Act seek to ban speculative ticket sales, deceptive practices, and price gouging, while requiring more transparency in resales.

Scalping isn’t going away, but as it increasingly affects broader cultural spaces, thoughtful legislation is essential to ensure fairness and accessibility for all. From concerts to fine dining, the battle against bots and unfair markups continues.

Source: MSNBC