New York Attorney General Eric Schneiderman, who recently finished a three-year investigation of the industry, is also cracking down on the bot runners. Earlier this year, he got six companies to pay $4.2 million in settlements for violating New York ticket laws by using bots to scoop up thousands of tickets.
More than anything, the ticket business in general is plagued by a raft of problems, including under-the-table agreements and computer algos that swallow quantities of tickets.
Rigged System
“Ticketing is still a rigged system,” Schneiderman said.
A central plank of many the brokers’ pitches: supposed access to sports and entertainment figures. Carton told Brigade he had contracts with a concert promoter to buy millions of dollars in tickets. He also showed an email in which a sports and entertainment company agreed to sell $2 million of tickets. Those documents turned out to be fake, prosecutors say.
Even a hint of celebrity can be a powerful allure.
One wealthy individual, who spoke on a condition of anonymity, invested in Meli’s ticket scheme for a brief time after attending a party where he saw Mick Jagger’s manager give Meli a hug.
Fans, of course, are the biggest losers. But the new economics of tickets are also hurting another camp, albeit one fans already love to hate: old-fashioned scalpers.
“It ain’t the same no more,” said Terry Smith, who was trying to sell Mets tickets outside Citi Field on a recent Saturday night. “We ain’t making money like we used to.”
Rest assured, others are -- and then some.