California Takes Steps Against Speculative Ticket Sales

California is cracking down on the sale of speculative tickets. Governor Gavin Newsom signed a bipartisan bill, AB-1349, on Sunday. This new law targets the resale market for live-event tickets.

Speculative tickets, also called ghost tickets, are concert and sports tickets listed for sale before resellers actually have them. The new law prohibits sellers from advertising, listing, or selling tickets they don’t possess or have the legal right to obtain, unless permitted by the event’s presenter or venue. Newsom stated on X, “Buying a ticket shouldn’t come with hidden risks or unfair practices.”

The law also bans the use of software that bypasses ticket limits, queues, and presale restrictions. It limits websites and advertisements that make resellers appear as authorized ticket agents. Violators may face misdemeanor charges and penalties.

Despite signing the bill, Newsom expressed reservations. In his signing statement, he mentioned the bill could take “an uneven approach” by allowing some sellers to bypass certain obligations. He urged Assemblymember Isaac Bryan (D-55), the bill’s author, to consider refining it. Newsom did not specify which sellers might be exempt.

Amendments late in the legislative session raised concerns. Critics argue these changes effectively exempted platforms like StubHub, a major ticket resale platform. The final bill version excludes resale marketplaces from being labeled speculative ticket sellers, though it still bars them from knowingly or recklessly facilitating these sales. It requires them to take “reasonable measures” to prevent them. The law also provides a safe harbor for California pro sports teams and venues managing their own ticket inventory.

The National Independent Venue Association (NIVA) initially supported AB-1349 but requested a veto after it was amended. They claimed the final version creates a private right of action for speculative ticket sales affecting independent venues, festivals, and presenters while explicitly exempting resale marketplaces from classification as speculative ticket sellers.

Stephen Parker, NIVA’s executive director, stated, “AB 1349 could have been an opportunity to stop the sale of ghost tickets. It puts small businesses and nonprofits at risk. And, it endangers fans’ economic well-being.”

When introduced last year, Live Nation, which owns Ticketmaster, supported the bill, whereas StubHub lobbied against it. According to CalMatters, StubHub spent $4.4 million lobbying on the measure and other bills during the two-year legislative session. Eventually, StubHub supported the final bill version. Live Nation did not comment.

As ticket prices for events like concerts and sporting games rise, numerous bills addressing ticketing issues are emerging across the U.S. California now aligns with Maryland, Minnesota, and Maine, which have similar restrictions on speculative ticket sales.

Legislators also considered a bill imposing a resale price cap, limiting prices to no more than 10% above face value. It stalled in the Senate Appropriations Committee in August.