Although there are no law outright states that ticket scalping is a crime, this does not mean that companies are not suffering losses. Ticket scalping is the act of reselling a ticket to a fan after it has sold-out and is no longer available for purchase directly from the company. As is the case of any commodity, higher demand will increase the value of these premium tickets.
One way of obtaining tickets is by buying them at concerts or sporting events. Here, Ticket resellers purchase them from fans and then resell it to other people at a higher or lesser price. In this case, the Ticket scalper assumes that the tickets are limited in supply, and as such, there will soon be a shortage that will lead to increased demand and price.
Reducing Ticket Scalping With the Use of Blockchain
To combat this problem, two companies have resorted to using a Blockchain-based ticketing solution and an events management system. TechFinancials Inc., a Fintech software provider, revealed its partnership with Footies Tech Ltd., a Blockchain based ticketing venture. Their new platform is called NewCo, and sports venues and teams will use it.
NewCo will restore full control of tickets to sports organizations by enabling them to trace tickets once they have been issued. They will also be able to control how the secondary market operates and set regulations through the use of smart contracts. As a result, ticket scalping will be reduced, and there will be an improved level of security and transparency.
Losses Made Through Ticket Scalping
TechFinancials revealed that each year, the football ticketing market with 4.2 billion fans, worths about $35 billion. But then, this does not account for the losses that are made through ticket scalpers. Hence, the value is only an estimate of what is usually raised. Therefore, Blockchain technology will be beneficial to fans as well as the football clubs.
Ian Ayre, CEO of Footies Tech said that;
For years, both of these parties have suffered at the hands of ticket touting, and we aim to solve this by making it a more secure and stable market.
Through transparency, a customer will be certain that the ticket they have bought is directly from the host of the event. The same can be said about companies who will be able to account for most, if not all of the tickets that were made available. Since these tickets are traceable, one can also determine when they were bought.