Ticket broker licensing requirements come from the states, not the federal government. Roughly a dozen states require commercial ticket resellers to obtain a license, registration, or certificate before selling a single ticket, and most of those states also require a surety bond. Federal law adds a separate layer on top: a ban on bot-acquired tickets and a mandate that every price you show includes all mandatory fees. Getting any piece of this wrong carries real exposure, from misdemeanor charges at the state level to civil penalties above $50,000 per violation at the federal level.
Which States Require a Ticket Broker License
About a dozen states require commercial resellers to hold a license. The rest either regulate resale through general consumer protection statutes without a dedicated license or impose no special requirements on brokers at all. Some licensing states run centralized permit systems through the Secretary of State or a consumer affairs division. Others delegate licensing to cities or counties, so the relevant authority may sit at the municipal level rather than the state capital.
Whether you need a license usually turns on the nature of your activity rather than a hard sales-volume threshold. The common definition captures someone engaged in the regular, ongoing business of reselling tickets from a permanent location. Selling a handful of tickets you can’t use generally does not trigger licensing. Buying inventory with the intent to resell at a markup usually does. Factors that push an operation into “broker” territory include maintaining a dedicated office, advertising resale services, or treating resale as a principal business activity.
Operating without a required license is typically a misdemeanor. Penalties commonly include fines in the hundreds to low thousands of dollars and the possibility of up to a year in jail, though enforcement tends to focus on commercial-scale operations rather than fans offloading a few seats.
What the License Application Looks Like
Specifics vary by jurisdiction, but a broker license application generally asks for the same set of items:
- Legal entity name, physical office address (not just a P.O. box), and federal employer identification number.
- Personal information for each owner and officer, and in many cases criminal background checks or fingerprinting.
- Proof of a permanent place of business. Several states make this an explicit condition of licensure.
- Copies of other business licenses, sales tax permits, or incorporation documents.
- An application fee, ranging from a few hundred dollars for smaller permits to several thousand for full commercial licenses. These fees are generally non-refundable even if the application is denied.
Applications typically go through a state’s Department of State, Secretary of State, or Department of Consumer Affairs. Some states accept online filings. Others require paper submissions with notarized signatures. Review periods generally run 30 to 90 days. Once approved, the license or certificate must be displayed at the primary business location. Some jurisdictions also issue portable identification for brokers who sell in person near venues.
Surety Bond Requirements
Many licensing states require a surety bond before issuing the license. The bond is a financial backstop: if you fail to deliver tickets or otherwise harm a consumer, the bond provides a pool of money from which the consumer can claim compensation.
Bond amounts vary. Some states set a flat requirement around $25,000. Others scale the bond to sales volume and complaint history, with upper limits that can reach $100,000. The bond must stay active for the entire license period; letting it lapse typically triggers automatic suspension. Premiums depend on your creditworthiness and generally run between 1% and 10% of the bond amount annually, so a $25,000 bond with decent credit costs somewhere between $250 and $2,500 per year.
Federal Rules Every Broker Has to Follow
Federal law does not require a broker license, but it imposes two rules that apply whether or not your state licenses you.
The BOTS Act
The Better Online Ticket Sales Act of 2016, codified at 15 U.S.C. ยง 45c, makes it illegal to use automated software to bypass security measures or purchasing limits on ticketing websites. It also prohibits selling tickets you know were acquired that way.1Office of the Law Revision Counsel. 15 USC 45c – Unfair and Deceptive Acts and Practices Relating to Circumvention of Ticket Access Control Measures Violations are treated as unfair or deceptive practices under the FTC Act. Penalties follow the FTC’s annually adjusted civil penalty schedule, currently above $50,000 per violation.2Federal Trade Commission. Notices of Penalty Offenses Each bot-acquired ticket can count as a separate violation, so exposure accumulates quickly.
All-In Pricing Under the FTC’s Fees Rule
Since May 12, 2025, the FTC’s Rule on Unfair or Deceptive Fees (16 C.F.R. Part 464) has required anyone selling live-event tickets to display the total price upfront, including all mandatory fees. The total must appear more prominently than any other pricing information in advertisements, listings, and checkout pages. Before the buyer agrees to pay, the seller must itemize any charges excluded from the total and disclose the final payment amount.3Federal Trade Commission. The Rule on Unfair or Deceptive Fees – Frequently Asked Questions The rule applies to primary sellers, secondary-market resellers, and third-party platforms. Burying service fees until checkout now violates federal law, and the FTC has already brought enforcement actions under the rule, including a $10 million settlement with StubHub in April 2026.4Federal Trade Commission. StubHub Refunding $10 Million in Fees to Consumers After Deceptive Ticket Pricing
The practical rule for brokers: every listing, advertisement, and search result that shows a price must lead with the all-in number.
Ongoing Compliance Once You’re Licensed
Holding a license is not a one-time event. States impose continuing obligations designed to keep the resale market transparent.
Transaction Records
Licensed brokers must maintain detailed records of every purchase and sale. Required information typically includes the event name, seat location, original face value, purchase price, sale price, and buyer identity. Retention periods vary but commonly span several years. State investigators may audit without advance notice.
Disclosures
Most licensing states require you to disclose the original face value of each ticket at the time of sale, so buyers can see the markup. Some states also require disclosure of seat restrictions like obstructed views or non-contiguous seating. These state disclosure rules sit on top of the federal all-in pricing mandate, not instead of it.
Price Caps
Several states limit how much a reseller can charge above face value. Some cap the markup at a flat dollar amount (as low as a dollar or two). Others use a percentage cap. A few restrict above-face-value sales only near venue entrances or on publicly owned property. Many states impose no ceiling at all. If you sell across state lines, you need to know which model applies both where you’re based and where the event takes place, because the stricter rule often controls.
Tax Obligations
Ticket resale income is taxable, and the IRS has reporting mechanisms that make it hard to overlook.
Form 1099-K Reporting
If you sell through a third-party platform like StubHub or SeatGeek, the platform reports your gross payments to the IRS on Form 1099-K when your annual sales exceed $20,000 and you complete more than 200 transactions in a calendar year.5Internal Revenue Service. Publication 1099 (2026) Below that threshold the income is still taxable; you just won’t receive the form.
Self-Employment Tax
If reselling is your business rather than an occasional offloading of extra tickets, you owe self-employment tax on net earnings of $400 or more. The rate currently runs 15.3% on net profit, separate from your regular income tax. The combined bite catches newer brokers off guard.
Deductible Expenses
Business expenses reduce taxable income. Platform fees, credit card processing charges, the cost of the original tickets, subscription fees for ticket-alert services, surety bond premiums, licensing fees, and travel to events for buying or selling can all be deductible. Reconstructing a year of platform fees at tax time is miserable; organized records throughout the year save real money.
Sales Tax
Many states treat ticket resales as taxable transactions and require brokers to collect and remit sales tax. Some apply the standard sales tax rate. Others impose a specific amusement or admissions tax. Whether the tax applies to the full resale price or only the markup above face value depends on the state. After the expansion of economic nexus rules for online sellers, brokers selling across state lines may have collection obligations in multiple jurisdictions.
Refunds for Canceled Events
No federal law requires ticket brokers to issue refunds when an event is canceled or postponed. Refund rights on the secondary market are governed by your own refund policy, the platform’s terms of service, and any applicable state consumer protection statutes. Some licensing states build refund obligations into the license conditions, and a surety bond may cover undelivered tickets, but the picture is inconsistent. A clear, written refund policy disclosed before the sale reduces chargebacks and state enforcement risk.