New York State Senators Push For Laws To Restrict Scalping

Back in 2001, when the highest-priced Broadway tickets would go for around $100 each, THE PRODUCERS introduced the concept of premium tickets, were at least 50 of the best seats in the house would sell for $480, with unsold seats eventually reverting back to the standard price.

The idea was to discourage scalpers from buying large quantities of tickets and selling them for huge profits, but as the years went on and premium seating became a standard practice, customers proved willing to pay astronomical sums for the hottest shows in town, and while scalping was illegal in New York, the Internet made it easy to buy high-priced seats to sold out shows from out-of-state resellers.

In 2007, New York State scrapped its anti-scalping laws and allowed tickets for all entertainment events to be resold at whatever prices the market would support, but that action is set to expire on May 14th and the Daily News reports that two state senators are calling for a legislative hearing into the matter.

Senators Daniel Squadron and Brad Hoylman, both Manhattan Democrats, wrote Senator Andrew Lanza, the Staten Island Republican who chairs the Senate Investigations and Government Operations Committee, calling for an oversight hearing to "ensure that the Legislature does not again blindly renew a law that benefits very few at the cost of so many."

At present, 54% of all tickets to are set aside for industry insiders or presale customers before they are offered to the general public. Ticket brokers looking to sell above face value often illegally deploy "bot" software that allows them to buy thousands within seconds of their going on sale.

"It is clear that New York State has created a system that enriches brokers and profiteers at the expense of everyday fans," write Squadron and Hoylman. "The Legislature must stand up to the special interests that have broken the market, and again allow everyday New Yorkers a fair shot at seeing events."

The Senators support legislation that would again place caps on how much tickets can be resold for above face value and prevent profiteering on tickets for nonprofit events. Free tickets to see Pope Francis during his visit to New York last year were offered online for hundreds of dollars each.

Lanza did not return a call for comment about whether he intends to hold a hearing into the ticket-scalping laws.

Click here for the full article.