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ticket scalping

Scalpers hoping to earn a big payout flipping Chappell Roan tickets likely just watched their profits vanish after the singer announced she was shutting down resellers charging outrageous markups for her Oct. 1 show in Franklin, Tenn.
The news was greeted with praise by fans who have watched the “Good Luck, Babe!” singer’s star rise to new heights this summer — as well as by questions from ticket buyers wondering how the singer was able to call a mulligan on tickets she’d already sold to ensure actual fans get to attend her show instead.

The answer isn’t totally clear — Roan’s reps did not respond to Billboard‘s requests for comment — but there’s enough information already available about the Franklin show to tell part of the story. It’s also worth noting that Roan isn’t the first artist to deal with scalpers trying to mark up fan-friendly $30 lawn tickets to as high as $900; in years past, major artists like Ed Sheeran and Eric Church, among others, have utilized the same strategy. And while not a perfect system, it’s still an impactful way to ensure that more fans have access to affordable tickets.

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In many ways, for a breakthrough artist like Roan, there are worse problems to have. Over the last year, thanks to the success of her 2023 album The Rise and Fall of a Midwest Princess, her work as a supporting act on Olivia Rodrigo‘s Guts World Tour and her breakout performances this summer at Lollapalooza and Coachella, Roan, as some say in music business parlance, is the blowing the f— up. Now, as with any big star, scalpers are taking advantage.

In one less extensive example of this, tickets for Roan’s Oct. 2 show at Walmart Amphitheatre near Rogers, Ark., were originally priced between $30 and $80 when they went on sale in June. Now, they’re selling for $300 to $1,200 on StubHub and other secondary sites — though in that case, only a couple dozen tickets, out of 11,000 total capacity, appear to be listed on StubHub.

But in Franklin, there were dozens, maybe hundreds, more resale tickets on sale for the show at the 7,500-capacity FirstBank Amphitheater. Located just 20 miles south of Nashville, Franklin is a much bigger music market than Rogers, and the price gouging for tickets apparently prompted someone from her team to work with reps from Ticketmaster to find out who is scalping those tickets and take them away from those responsible.

Catching scalpers on Ticketmaster, especially after a sale has been made, isn’t particularly complicated. While there are laws governing ticket ownership and rights, in most cases ticketing companies treat tickets like revocable licenses, meaning they have the right to disable tickets that a fan purchased and refund them their money if they are caught violating Ticketmaster’s terms of service.

For example, many scalpers will try to buy up as many tickets as possible using multiple credit cards. That’s a violation of Ticketmaster’s “limit per order” policy, which limits the number of tickets that can be purchased per order based on the event and demand for tickets.

Ticketmaster prohibits users from using multiple IP addresses or email addresses when buying tickets, so if someone successfully completed a purchase of a Chappell Roan ticket but was later found to have used multiple email addresses or a VPN to hide their IP addresses, that could be grounds for their tickets to be canceled and refunded. It wouldn’t take long for a couple of Ticketmaster executives to comb through the transactions for a 15,000-capacity show and find purchases tied to bots with no IP addresses, or large purchases from newly-created accounts linked to free email services.

Once those transactions are identified, most are investigated and the purchases canceled. In Roan’s case, the canceled tickets were pooled and sold via lottery to fans who had to register in advance for a shot at buying them. Though it’s unclear how many tickets were canceled and reissued to fans, it’s unlikely that more than a few hundred tickets were involved.

While this practice is popular with fans and punishes amateur scalpers, there is an argument to be made that, in some cases, it enriches professional scalpers who are better at avoiding detection by reducing the number of tickets available on resale sites and in turn driving up the price for those tickets that aren’t taken down.

But the effort isn’t specifically aimed at eliminating all ticket scalping. Instead, it’s about randomly disrupting the predatory practices of scalpers targeting vulnerable shows by rising artists like Roan who don’t want to charge fans hundreds of dollars to see their concerts. And by focusing on high-margin shows where scalpers are set to make big paydays, artists like Roan really can impact the pocketbooks of professional ticket resellers and help keep more of their tickets affordable for fans.

A small percentage of Taylor Swift fans made huge profits reselling their Eras Tour tickets on sites like StubHub as professional scalpers mostly had to watch from the sidelines, according to data reviewed by Billboard.

The unusual dynamic underscores the challenges major tours face in combating scalpers — and the unintended consequences of efforts to keep tickets off the secondary market.

Swift’s touring team sought to keep tickets for the Eras Tour off the secondary market, according to Ticketmaster officials, and met with Ticketmaster executives to discuss how to best prevent mass ticket scalping. One option was that Ticketmaster could use its Safetix service to digitally lock tickets in place and prevent fans from transferring their tickets, effectively blocking all ticket buyers from reselling their tickets on sites like StubHub. But the downside was that, while many fans liked the idea of blocking scalpers, they didn’t like having their own tickets made non-transferable and found such restrictions inconvenient.

Ultimately, the tour decided to use Ticketmaster’s Verified Fan platform to screen out scalpers from the initial ticket sale, asking buyers to register in advance. Fans identified as legitimate fans were sent a code allowing them to buy tickets during the presale, which opened on Nov. 15, 2022, and subsequently crashed as millions of fans, scalpers and bots flooded the site.

Ticketmaster officials would later say the website meltdown was the result of a massive denial of service attack that disrupted the presale but didn’t defeat the security measures put in place to screen out scalpers from fans. As proof of its success, Ticketmaster announced that less than 5% of the approximately 5 million tickets sold for the tour ended up being listed on secondary markets.

It’s an impressive feat compared with other major tours in 2023 that took fewer steps to keep tickets off the secondary market and on average saw 20–30% of available tickets sold through StubHub.

While secondary tickets for tours like Beyonce’s and Coldplay’s were initially listed at major markups several times the face value, as more tickets moved through the secondary market prices dropped over time.

Swift’s Eras Tour saw the opposite effect. Eras tickets on StubHub were marked up 10 times face value, and then never dropped. The huge spike in price allowed resale sites, which collect a percentage of sales from both sellers and buyers, to make up the revenue it would have generated had they sold a higher volume of tickets, according to a StubHub rep.

Selling the tickets was easy, but getting them into the hands of fans proved difficult. StubHub noticed that orders for Eras tickets were experiencing an unusually high volume of delays and complaints from buyers. When company officials investigated the issue, they discovered that 83% of the Eras Tour tickets sold on its site were coming from new accounts with no record of past sales. The vast majority of those tickets are believed to have come from Swift fans, and they were making big bucks. A ticket with a face value under $150 could fetch $1,700, while tickets close to the stage were going for as high as $10,000.

While the outcome of the story is surprising, the fact that 83% of the available inventory of Eras Tour tickets on StubHub was sold by fans and not ticket brokers is a testament to how efficiently Swift and Ticketmaster were screening out professional scalpers, reducing their access to inventory to less than 1% of available tickets. While Swift would probably prefer that none of her tickets be flipped on the secondary market, at least she can take solace knowing that her fans, not professional scalpers, reaped most of the financial rewards.