California’s Crackdown on Ghost Tickets: A Closer Look
California is addressing issues in the live-event ticket resale market. Governor Gavin Newsom signed a bipartisan bill, AB-1349, on Sunday, targeting the sale of “ghost tickets,” tickets sold before the reseller possesses them.
Understanding Ghost Tickets
Ghost tickets are speculative tickets that resellers list without having them. The new law prohibits sellers from advertising, listing, or selling tickets they do not possess, unless permitted by the event’s presenter or venue.
Preventive Measures
The law bans software use to bypass ticket limits, queues, and presale restrictions. It also targets websites and advertisements misleading buyers into believing resellers are official ticket sources. Violators risk misdemeanor charges and penalties.
“Buying a ticket shouldn’t come with hidden risks or unfair practices.” – Gavin Newsom
Reservations on the Bill
Governor Newsom expressed concerns in a signing statement, noting the bill allows certain sellers to avoid obligations. He urged Assemblymember Isaac Bryan to refine the law, highlighting inconsistencies.
Exemptions and Criticisms
Critics point to amendments exempting platforms like StubHub from the speculative ticket seller definition. Although excluded, they are barred from facilitating sales knowingly or recklessly. The bill requires “reasonable measures” to prevent such sales. California pro sports teams and venues managing their own ticket inventory have safe harbor.
The National Independent Venue Association (NIVA), initially supportive, called for a veto after amendments. They argue the bill puts independent venues at risk while exempting resale marketplaces.
Financial Impact
StubHub spent $4.4 million lobbying against the original bill but eventually supported the final version. Live Nation, initially supportive, has not commented.
National Trends
As ticket prices rise, various bills addressing ticketing issues emerge nationwide. Similar restrictions exist in states like Maryland, Minnesota, and Maine. A separate California bill proposing a price cap on resale tickets stalled in the Senate.