Evolution of Scalper Bots Part 1: Origins of Scalping
In the evolving landscape of online ticketing and eCommerce, few technological developments have been as controversial as scalper bots. These automated programs, designed to purchase high-demand items faster and more efficiently than humans could, have transformed the way we buy and sell coveted goods online.
During this forthcoming blog series, we are going to explore the fascinating evolution of scalper bots. We will trace their origins, developments, and impacts across several distinct eras. From their humble beginnings to the sophisticated systems of today, we’ll examine how scalpers have adapted to changing markets, mitigation measures, and consumer behaviors.
Just as a flavor of some of what’s to come, we’ll cover:
- The primordial origins of ticket scalping.
- The first successful scalper bot.
- The ongoing cat-and-mouse chase with mitigations.
- The professionalization of scalper communities.
- The current state of scalper bots.
- The future of scalper bots.
In our first installment, we’ll challenge common misconceptions about when scalping first emerged. Contrary to popular belief, the story doesn’t begin with scalper bots targeting limited sneakers or concert tickets. Instead, we’ll trace the roots of scalping, revealing how opportunists laid the groundwork for today’s sophisticated bots. Let’s begin our journey by turning back the clock and exploring their often-overlooked ancient origins.
The Origins of Ticket Scalping
The true origins of ticket scalping are debated, but some theories trace it as far back as 325 BCE – around the first Greek amphitheaters. If true, this opportunistic practice likely extended to ancient Rome when theatres were built in Pompeii around 80 BCE and later in the Rome Colosseum in 80AD. We can also reasonably assume Elizabethan England saw ticket scalping emerge outside theatres like Shakespeare’s Globe, which opened in 1599 and staged hotly anticipated shows.
Though historical records are sparse, the fundamental concept of profiting off limited ticket supply appears to have roots over two millennia old. The internet may have revolutionized scalping, but its primordial origins lie deep in the history of live entertainment and public spectacle.
Ticket scalping continues to plague the Colosseum even after 2,000 years. The Italian government came up with a plan to tackle this problem in September 2023, planning to print visitor names on tickets and ask for ID just like they do for football games. They also intend to keep some tickets for sale at the site, with each person allowed to buy one. This move comes after Rome’s tourism councillor voiced worries about widespread ticket scalping at this ancient landmark.
Scalping in the 1800s
Whilst origins of ticket scalping stretch back thousands of years, the practice really took off in the 1800s as live entertainment boomed. The term “scalping” first appeared referring to opportunists reselling railway tickets. They would use hired “diggers” to wait in line or corrupt insiders to collect “ice” (bribes) to obtain sought-after tickets first.
In 1851, when Swedish singer Jenny Lind toured America, the best seats mysteriously vanished, only to reappear with resellers charging huge markups. Charles Dickens’ 1867 abridged “Christmas Carol” book performance saw similar schemes, with fans paying scalpers up to $10 for $1 tickets.
By 1893, public sentiment had turned strongly against ticket scalping. As one editorial writer put it that year, scalping was a “species of petty extortion.” Yet despite all this anti-scalping rhetoric, a few people wondered whether the practice was such a deserving target of vilification. Many theaters would have preferred to control scalpers rather than eliminate them. They recognized that scalpers served a purpose, particularly for rich theatergoers. These patrons didn’t mind paying premium prices to avoid waiting in line for tickets.
So, the practice persisted, fueled by demand for entertainment in a rapidly industrializing world. Scalpers exploited supply and demand dynamics even without today’s automation, through insider connections and physical organization at box offices.
While the birth of the internet and online ticket sales enabled today’s mass scalping operations, shrewd scalpers perfected reselling theatre, lecture, and rail tickets for profit throughout the 1800s, earning public ire but evading regulation. Scalping as we know it today was already an infamous phenomenon by the dawn of the 20th century.
Early Attempts at Legislation
Lawmakers’ efforts to curb ticket speculation, as it was referred to during this era, were largely unsuccessful. For example, three attempts by New York to legislate the issue, in 1870, 1884, and 1908, failed to pass.
As a result, event organizers sought ways to tackle scalpers head on. In 1890, the organizers behind the Princeton and Yale game introduced a 4-person limit for tickets and reserved a block of tickets to release at the last minute for face value. These measures were largely ineffective, as scalpers often purchased tickets through “proxies”, or bribed individuals for access to tickets.
In the early 1900s, however, anti-scalping legislation finally gained some traction, though with limited success. The 1914 Sherman and Clayton Acts prohibited price fixing, marking the first federal law related to ticket resale. But New York’s attempts to curb Broadway and music hall scalping in 1927, 1949, and 1963 never made it passed the necessary legal and political avenues. The 1964 advent of computerized ticketing systems (SABRE) like Computicket created a new obstacle for scalping through tracking, but still the scalpers endured.
The Rise of Rock Music
Scalping practices surged in the 1960s with rock concerts selling out at huge venues. In 1972, the Rolling Stones’ promoter devised an innovative lottery system to sell tickets for their four Madison Square Garden shows. This approach aimed to deter scalpers and manage the overwhelming demand that threatened to overload both the box office and Ticketron, the computerized ticketing system of the time. Fans were instructed to mail in postcards, from which winners would be randomly selected for the opportunity to purchase tickets. However, the plan partially backfired when the promoter received an unexpected deluge of over half a million postcards, far exceeding expectations.
Bruce Springsteen also condemned scalpers in the 1980s, as $12 tickets went for as much as $200. Beyond music, scalping invaded toy sales, with Cabbage Patch dolls in 1983 being resold at huge markups. The American Italian mafia infiltrated supply channels, paying off insiders to control doll inventory in certain markets like New York, Philadelphia, and Florida.
Worldwide Impacts of Scalping
The practice of scalping during this time had also impacted events and markets worldwide for decades. One such example was the 1970 FA Cup Final between Chelsea FC and Leeds United at Wembley Stadium. It was claimed that ticket touts caused obstructions around the ground before the match. This led to the Secretary of State for the Home Department in the UK Government being questioned and asked to release the Police Commissioner’s report on addressing the problems caused by ticket touts.
Scalping at the Turn of the 21st Century
By 2000, one study estimated US scalpers profited $87 million annually by reselling tickets. That same year, StubHub was founded as the first online ticket marketplace, providing a new platform for scalpers. No longer limited to street deals, scalpers could now easily connect with buyers online and sell unlimited tickets.
Artists struggled to combat these new digital scalping operations. Country singers like Eric Church and Luke Combs tried using online fan clubs to monitor buying and maintain face value ticket prices. But despite these efforts, scalping was becoming increasingly lucrative in the online era.
Between the mafia infiltrating goods like Cabbage Patch dolls in the 80s and the launch of StubHub in 2000, scalping had been transformed. No longer just opportunists reselling tickets on street corners, scalping was now a sophisticated economic enterprise that was just starting to be run through digital marketplaces. Scalping had come a long way from its inception, leveraging technology and organization to maximize profits from entertainment culture.
Coming Up in Part Two
The practice of scalping has origins as old as thousands of years, from the opportunist sellers at Greek amphitheaters all the way to ‘sidewalk men’ standing outside theatres of some of the top Broadway shows. However, things really changed when automation came into the picture.
In the next post, we’re going to discuss how scalper bots came to be. It’s a big jump from standing in line to resell concert tickets, to having a bot do all the work. There’s lots of interesting tales throughout this series, so don’t miss out!
