The Benefits and Risks of Online Ticket Brokering

Online ticket brokering has become a booming industry, with many people turning to online marketplaces to buy and sell tickets to events.

These online marketplaces can be a convenient way to get tickets, especially for hard-to-find events.

However, online ticket brokering also comes with its own set of risks.

Prices for tickets can be inflated due to demand, leaving buyers with a hefty bill.

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Ticket brokering is a legitimate business that operates out of offices and uses the internet and phone call centers to conduct transactions.

Ticket brokers offer a consumer-facing storefront to return to if there's any problem with the transaction, which is a key difference from scalpers.

They often host their own websites and interact directly with customers, offering additional services like hotel accommodation and airfare to events.

Some brokers partner with online ticket exchanges, which act as marketplaces allowing users to purchase tickets from a large network of brokers.

These sites determine prices based on demand, availability, and the ticket reseller.

Ticket brokers may or may not be authorized by the official seller, and the majority of trading on their websites concerns tickets to live entertainment events that have been declared sold out.

The late 1990s and early 2000s saw the emergence of online ticket brokering as a lucrative business.

Ticketmaster, a major player in the industry, developed a strong online presence and made several acquisitions to compete in the secondary markets.

They eventually launched their own fan-to-fan secondary ticket reselling site, TicketExchange, in November 2005.

Ticketmaster also acquired former rivals GetMeIn and TicketsNow, while eBay bought StubHub in a notable deal.

Independently owned online ticket resellers like viagogo and SeatMarket also operate in the market.

The growth of the ticket resale market has been consistently growing and is expected to expand even further.

Criticism of online ticket brokering is on the rise, particularly for popular events with sold-out tickets. Resellers may sell tickets at several times the face value, leaving buyers with a hefty price tag.

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Some online ticket resellers use deceptive tactics to lure in customers. They create URLs that are similar to official box-office websites and may imply that they are official. This can be confusing for buyers who are not familiar with the website.

Resellers also use internet advertising to increase traffic to their website, which can make it difficult for buyers to find legitimate ticket sellers.

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Some online ticket brokers are taking steps to improve their reputation by attending conferences and training sessions.

The Better Ticketing Association's Ticket Summit 2008 in the US is a prime example, covering topics like 'Getting Legal' and 'Building Your Base: The Lost Art of Customer Service'.

Online ticket broker communities are becoming more legitimized, with many states in the US repealing laws against ticket reselling.

Five states made the resale of tickets legal in 2007, with Missouri senator stating that it's nonsensical to turn people into criminals for reselling a ticket.

To compete with primary sellers, online brokers are being forced to offer the same level of service, making the resale market more 'above board'.

Some online ticket resellers use URLs that are similar to official box-office websites, making it difficult to distinguish between legitimate and unauthorized sellers.

Resellers may sell tickets at several times the face value, but if the tickets aren't sold out, they risk a loss. This can be a gamble for both buyers and sellers.

Individuals who buy tickets in large quantities to resell them for a profit may be seen as taking advantage of others who just want to attend the event. Some countries have restricted the unauthorized resale of tickets.

Many online ticket resellers avoid clearly stating the real prices that are charged for a ticket, which can lead to confusion and frustration for consumers.

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Online ticket brokering has a significant presence in the US and UK markets. The US market is particularly large, with many companies operating in the space.

Ticketmaster, a leading ticketing company, dominates the US market, with a reported 70% market share. This has led to concerns about monopolistic practices.

In contrast, the UK market is more fragmented, with several smaller companies competing for market share.

The United Kingdom has a complex relationship with ticket resale. In the UK, the resale of football tickets is illegal under section 166 of the Criminal Justice and Public Order Act 1994 unless the resale is authorized by the organizer of the match. This means that buying and selling football tickets on the secondary market is heavily restricted.

However, for other types of events, there are no legal restrictions against reselling tickets. In fact, some organizations like Wimbledon may prohibit ticket resale, but it's not a blanket ban across the country.

Some prominent music managers in the UK have come together to tackle the issue of 'industrial-scale online ticket touting'. They've launched an initiative called the FanFair Alliance to work towards addressing this problem.

Here's a breakdown of the key points to keep in mind:

The United States has a thriving ticket resale industry, with a whopping $5 billion in sales annually.

Ticket resale on event premises can be prohibited by law, and laws vary from state to state, with most states not having limits on resale prices or sales locations.

In New York State, prices above face value are allowed, but only by the greater of $5 or 10%.

Some US states and venues encourage designated areas for resellers, while others prohibit ticket resale altogether.

In 2025, President Donald Trump issued an executive order to crack down on ticket scalping, and the FTC sued a ticket reseller for using fake accounts to evade purchasing limits.

Many resellers use a loophole by selling tickets outside the state where the event is held.

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Ticket selling and auction practices have evolved to combat ticket reselling. Some promoters require prospective ticket holders to enter a ballot, a competition with random winners, to purchase tickets, as seen with the Big Day Out in 2007 and the Ahmet Ertegün Tribute Concert.

This approach makes it difficult for resellers to purchase large numbers of tickets. Ticketmaster, on the other hand, sells tickets in online auctions, which can bring the sale price closer to market prices.

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As a ticket reseller, integrating POS and API systems is crucial for success. You need to utilize custom inventory management systems, pricing engines, and ticket processing software to efficiently handle high volumes of ticket sales.

Off-the-shelf solutions won't suffice for serious resellers. To capitalize on the booming market, you need to integrate with other brokers' APIs, such as TicketNetwork, Ticket Utils, and StubHub.

Auto-uploader syncing features reduce the chances of "double sales" when broadcasting to various marketplaces. This software monitors your inventory file for any changes and automatically uploads your most recent inventory record to all the secondary ticket markets you have integrated with.

Ensuring mobile optimized websites with intuitive User Interfaces (UI) offers great flexibility. This allows users more than one way to access your system.

The security of your processing software is a critical component that defines the success of any business. You'll need to keep valuable credit card and transactional information safe to avoid compromising your company's reputation.

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To maximize your reach, consider integrating other brokers' APIs for Broker-to-Broker (B2B) and Broker-to-Consumer (B2C) exchanges. This can greatly increase sales thanks to having real-time communication and inventory exposure across a myriad of outlets.

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Ticket presales have become increasingly common, allowing more individuals to participate in reselling tickets outside of a broker's office.

These presales often use unique codes specific to an artist's fan club or venue, making it easier for fans to access tickets before they go on sale to the general public.

Ticket brokers may offer tickets even before they're officially available for sale, which can be done by selling forward contracts of those tickets.

Season ticket holders can enter into contracts to deliver tickets they own the rights to, even if those tickets haven't been printed or sent to the original ticket holder.

Ticket auction is a way for ticket sellers to connect with buyers, and it's been around for a while. Online auction sites like eBay are popular platforms for ticket resellers to sell their tickets.

Ticketmaster sells tickets in online auctions, which can bring the sale price of tickets closer to market prices, helping the agency determine demand for a given event. This can be a more effective way for ticket sellers to compete with resellers.

Online auction sites like eBay enforce state ticketing laws only if either the buyer and/or the seller resides in the state in which the event takes place. Otherwise, there is no resale limit for tickets.

Ticket resellers may also use online auction sites to list an item as an auction, giving the tickets as a bonus to the winning bidder, and so they don't actually sell tickets to circumvent ticket laws. This tactic doesn't actually get around eBay's selling rules, though.

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UK banks have issued a stark warning against government plans to impose limits on ticket resale prices. This move is a significant development in the ongoing debate surrounding online ticket brokering.

The coalition representing Britain's largest banks is opposed to price caps, suggesting that such regulations could have unintended consequences.

Ticket resale price caps are being proposed by the government, but the banks are warning against this approach. They argue that it could lead to a black market for tickets.

The banks' stance on this issue is a key consideration for anyone involved in online ticket brokering. Their concerns should not be taken lightly.