An End to the Ticket Tout's Game
The UK government has delivered a decisive blow to ticket touts, officially announcing a ban on reselling tickets for profit. This landmark decision, described by Business Department Minister Kate Dearden as a "no-brainer", follows more than a decade of campaigning by artists, consumer groups, and MPs.
The move comes just a week after stars like Thom Yorke of Radiohead, Coldplay, Dua Lipa, and Mogwai united to urge Prime Minister Keir Starmer to take action. The new legislation will outlaw the practice of selling tickets above their face value on specialist resale platforms and social media.
The Touts' Worst Nightmare Realised
The ban confirms the worst fears of professional ticket touts. In May of last year, undercover footage obtained by the Guardian revealed touts discussing the existential threat posed by Labour's manifesto pledge. One seasoned trader warned colleagues that if the policy went ahead, "we are all fucked." Eighteen months later, that prediction has come to pass.
For years, fans have faced exorbitant mark-ups, sometimes paying up to six times the original price for in-demand event tickets. The Guardian's investigations have repeatedly exposed the fraudulent tactics enabling this, including the use of "bots" to hoover up tickets and "speculative selling" where touts sell tickets they do not yet possess.
Consumer Savings and Stiff Penalties
The government estimates that the ban will save consumers up to £112 million per year, equating to an average of £37 per ticket. To enforce the new rules, a recently strengthened Competition and Markets Authority (CMA) will monitor resale sites.
Platforms found in breach of the law will face severe penalties, including fines of up to 10% of their global turnover. For a giant like Viagogo's US parent company, this could mean a penalty of approximately $180 million. The business model of these sites, which relies heavily on a small number of 'super touts', is now under direct threat.
The legislation does include carve-outs for certain legitimate models, such as the Wimbledon debenture system, and will not affect fan-to-fan resale platforms like Twickets, which only allow tickets to be sold at face value.
Industry Backlash and Fraud Concerns
Unsurprisingly, the resale industry has pushed back against the ban. Their primary argument is that shutting down regulated platforms will drive consumers towards unregulated fraudsters, potentially increasing scam rates. They often cite a report suggesting fraud rates are four times higher in Ireland and Victoria, Australia, where similar restrictions exist.
However, long-time campaigners like the FanFair Alliance are sceptical. They point out that the report in question was commissioned by StubHub and lacks comparative data from before the bans were implemented. Minister Dearden stated that the government has consulted with overseas counterparts and "we've not seen any evidence" that resale caps fuel fraud.
While the implementation date is yet to be confirmed, the announcement has already had a financial impact. Shares in StubHub Holdings tumbled about 20% – a loss of over $1 billion in market value – following the news.
