New York Attorney General Eric Schneiderman’s office published a lengthy report today on his investigation into the seedy world of ticket sales, and finds that on average, fewer than half of all tickets up for sale are reserved for the public. Fifty four percent of tickets are held for things like promotional purposes and exclusive presales.
More nefarious are the ticket brokers, usually a small group of people who utilize bots to buy up as many tickets as possible—sometimes thousands at a time—and then immediately start reselling them at markups as high as 1000 percent above face value. One $101 ticket to see One Direction at Madison Square Garden was resold for $7,244 on the secondary market. The sports industry might be even more corrupt, as leagues often force resellers to use preferred services that set price floors, artificially raising the prices of tickets on the secondary market.
The report, which you can read here, offers some solutions to the epidemic: Capping the amount a reseller can markup the price, introducing greater transparency on the distribution of tickets, and eliminating the use of bots.