California Targets ‘Ghost Tickets’ in Resale Market

California has taken significant action against the sale of speculative tickets, known as ‘ghost tickets.’ On Sunday, Governor Gavin Newsom signed a bipartisan bill, AB-1349, which aims to regulate the live-event ticket resale market. Speculative tickets are concert and sports tickets that resellers list without actually possessing them. The new legislation prohibits sellers from advertising, listing, or selling tickets they do not possess or have the legal right to receive, except when permitted by the event presenter or venue.

Governor Newsom emphasized the importance of transparency in ticket purchasing. “Buying a ticket shouldn’t come with hidden risks or unfair practices,” he stated on X. In addition to curbing speculative ticket sales, the law also bans the use of software aimed at bypassing ticket limits, queue restrictions, and presale conditions. Moreover, it targets websites and ads that misleadingly present resellers as authorized ticket sources. Violating sellers may face misdemeanor charges and penalties.

Despite signing the bill, Newsom expressed reservations. In his signing statement, he noted that the measure appears to offer an ‘uneven approach’ by allowing select ticket sellers to evade certain obligations under the bill. He urged Assemblymember Isaac Bryan, the bill’s author, to consider refining the law. Newsom did not specify which sellers he was concerned about, but cited last-minute amendments as problematic.

Critics argue these amendments effectively exempt platforms like StubHub, a major player in the ticket resale market. Although the final version of the bill excludes resale marketplaces from the definition of speculative ticket sellers, it mandates that they avoid facilitating such sales knowingly or recklessly. These marketplaces must also take reasonable measures to prevent speculative ticket sales. Additionally, the law offers safe harbor provisions for California-based pro sports teams and venues managing their ticket inventory.

The National Independent Venue Association (NIVA) initially backed the bill but later urged Newsom to veto it due to concerns about amendments. The association stated that the final version established a private right of action for speculative ticket sales applicable to independent venues, festivals, and presenters, while exempting resale marketplaces from the classification of speculative ticket sellers. NIVA’s executive director, Stephen Parker, remarked that the bill endangers small businesses, nonprofits, and fans.

Live Nation, responsible for Ticketmaster, supported the bill initially, while StubHub opposed it. According to CalMatters, StubHub invested $4.4 million in lobbying efforts over two years concerning this measure and other bills. Ultimately, StubHub endorsed the final version of the bill. Live Nation did not respond to requests for comment.

With live event ticket prices continually rising, legislative bills focusing on ticketing issues are gaining traction across the U.S. States such as Maryland, Minnesota, and Maine have enacted similar restrictions on speculative ticket sales. Lawmakers had also contemplated a separate bill to cap resale ticket prices at 10% above face value, but it stalled in the Senate Appropriations Committee in August.