The law governing ticket resales is set to expire, not only affecting companies like Ticketmaster and Stubhub directly, but also potentially the live performance industry overall. And now a last-minute push to make changes to the law has led to a standoff between the State Senate and Assembly, both of which must sign off on the changes.

Although it’s known as a secondary market, it has blossomed over the last several years. Tickets to live events such as concerts, Broadway shows and major sporting events are resold to those who want better a seat or failed to get seats when tickets first went on sale.

What You Need To Know

  • On June 30, the law regulating companies like Ticketmaster and StubHub is set to expire in Albany

  • The Assembly wants to renew the current law, but the Senate wants significant changes

  • If the two houses fail to agree, it reverts back to the old law allowing just a $2 markup on all resale tickets
  • Broadway producers, concert promoters and major sports franchises like the New York Yankees want to see it renewed

Next month, the state law regulating that market is set to expire, and now a State Senator wants some major changes before it gets renewed. 

“As Chair of the committee that has jurisdiction here, I am basically using the leverage of this upcoming sunset on June 30 to try and make improvements,” explained Democratic State Senator James Skoufis, who represents parts of Orange County. “We’ve got about a dozen reforms that we’ve included in this bill. That’s the culmination of a year-long investigative effort.”

But those representing the ticket resale industry say now is not the time to tinker with the current law. The business took a major hit this past year when most live performances were either cancelled, or strictly limited in attendance due to COVID-19.

“Unfortunately, as we all know, the industry is coming out of a very difficult time with COVID right now,” said Jason Berger of the Coalition for Ticket Fairness. “There are so many companies that either have closed, are partially reopened, or have furloughed a majority of their staff.”

Senator Skoufis said Wednesday that the changes he is seeking are supported by consumer advocacy groups and would include new protections for customers.

“Often times, the fees, the archive charges, the shipping and handling, they’ll amount to 20-30-40% of the cost of the ticket,” Skoufis said. “So from really cracking down on those runaway fees to making sure that promoters and insiders for these events aren’t able to hold back thousands of tickets for their family and friends.”

In order to make those changes, the Assembly has to agree. And that house already passed a straight, two-year extension of the current law. 

“We passed an extender a few months ago, and while I have great respect for my friend Jim Skoufis, there is not enough time left in the session to negotiate this,” said Democratic Assemblyman Daniel O’Donnell. “It took us almost two years to get to the most recent version we passed. There are a lot of people and a lot of players.”

If the Assembly and the Senate fail to come to terms and the law simply expires, it reverts back to a 1991 law that would allow the resale of tickets, plus only a $2 markup on every sale. Broadway producers, concert promoters and even the New York Yankees certainly do not want to see that happen.