Fla. Senate votes to lift ban on 'scalping' tickets for more than face value

[Dr. Jack]

About time - it's not like everyone doesn't do it anyway

Fla. Senate votes to lift ban on 'scalping' tickets for more than face value

By Sarah Talalay
South Florida Sun-Sentinel
Posted May 2 2006

Miami Dolphins season ticket-holder Charlene Dudley might not be the type to jack up the price of tickets to games she can't attend, but that won't stop her from applauding a bill that would allow sports and concert fans to sell their tickets for any price.

The Coconut Creek resident, who has had season tickets since the team's inaugural season in 1966, has always sold her tickets at cost, keeping within the Florida law that prevented tickets from being sold for more than $1 above face value.

On Monday, the Florida Senate approved amending the 61-year-old law, bringing concertgoers and sports fans one step closer to becoming their own ticket brokers.

"I don't think it's a bad idea," Dudley said adding the bill would just legalize a market that already exists. And if the Dolphins head to the playoffs, she said, "They might be worth a little bit more than they are now."

The bill, which passed the House last week, passed the Senate on a 37-1 vote. It now heads to Gov. Jeb Bush's desk. If he signs it into law, it would go into effect July 1.

"The governor is supportive of the idea, but he will thoroughly review the bill once he receives it," said Kristy Campbell, a Bush spokeswoman.

Now, it's a misdemeanor to re-sell tickets in Florida for more than $1 above face value.

"This will put Florida in conformity with 32 other states that do not regulate ticket sales," said state Sen. Mike Bennett, R-Bradenton, a sponsor of the bill.

Last year, New York and Illinois joined the states that have no restrictions on ticket resales. Reselling of tickets has grown dramatically on the Internet and estimates peg it at a multibillion-dollar industry.

Ticketmaster, StubHub and eBay, which led the effort to amend the 1945 law, said changing the law would open the secondary market, providing more competition and protections for consumers.

"Any restrictions in the market that don't allow people to freely buy and sell leads to less access," said Jeff Fluhr, CEO and founder of San Francisco-based StubHub. "With this bill they will now be able to get tickets and access to any event without restrictions."

StubHub, an online marketplace where fans can buy and sell tickets to concerts and sporting events, has donated at least $6,500 to Florida political campaigns since August, including $5,000 to the Republican Party and $500 to one of the bill's sponsors, Rep. John K. Stargel, R-Lakeland, records show.

Opponents worry consumers will face higher prices and more opportunities to buy fake tickets.

"We will be so rampant with fraud and thievery, because we've essentially opened up the ticket market to the world for resale," said Bob Levy, a lobbyist representing the South Florida Leisure & Entertainment Association, which includes state-licensed ticket brokers. "It's going to drive the price of tickets through the roof."

Members of the association are licensed as "sellers of travel," meaning they can sell tickets above the $1 ceiling by packaging them as tours or with other benefits.

John Stoll, owner of Fantasma Productions, the West Palm Beach based concert and events promoter, called the bill "ridiculous ... It makes more money for scalpers," he said.

But eBay, which records show has contributed at least $6,500 to state political campaigns since 2003, said the process of selling and buying tickets will become "more transparent" because brokers will no longer need to circumvent the law by adding extras to ticket prices. "We feel this legislation will open up the secondary market and encourage competition," said eBay spokeswoman Catherine England.

Some sports teams supported the bill, particularly those hosting areas on their Web sites where season ticket-holders can re-sell their tickets.

"This allows Ticketmaster and the teams a safe environment to sell tickets and for buyers to understand they're getting real tickets," said Eric Woolworth, Miami Heat president of business operations. "It helps add value to the season tickets themselves for season ticket-holders who can't make all 41 games, to be able to recoup some of that investment."