DOJ Sues San Diego Broker for $120M Profit from Bot-Driven Ticket Scalping

Key points

• The DOJ filed a 22-page complaint in the Southern District of California, alleging REPS & Co. circumvented ticket purchase limits for events including Beyoncé’s Renaissance tour and shows by Post Malone, Pitbull, and Luke Bryan.
• According to the lawsuit, REPS spent over $1.3 billion to acquire 18.5 million tickets since 2022, using thousands of fake accounts and software to bypass security measures on platforms like Ticketmaster and AXS.
• For a single Beyoncé concert in October 2023, REPS allegedly used 1,300 accounts to buy 7,624 tickets, exceeding the purchase limit of four to eight, and profited approximately $833,323 from the resale.
• The complaint details the use of offshore employees in the Philippines, SIM cards, and proxy IP addresses to maintain multiple accounts and evade detection, with profits totaling at least $120.8 million.
• This action follows a 2025 executive order prioritizing BOTS Act enforcement, marking the largest-scale ticket scalping case to date compared to previous actions against brokers like Key Investment Group.

Background

This lawsuit is part of a broader federal crackdown on ticket scalping initiated after President Trump signed an executive order in 2025 to enforce the BOTS Act. Previous cases against brokers such as Key Investment Group and Elite Events involved smaller profit margins, ranging from $3.5 million to $6 million. The current action against REPS & Co. represents a significant escalation in scale, with the FTC and DOJ coordinating efforts to protect consumers from inflated prices and restricted access to high-demand events.

How outlets are covering it

Rolling Stone, Billboard, and The Hollywood Reporter all confirm the core allegations regarding the $120.8 million profit and 18.5 million tickets. Billboard emphasizes the role of the FTC in referring the case to the DOJ and highlights the use of an 'Error Bible' by REPS to troubleshoot Ticketmaster security. The Hollywood Reporter focuses on the specific mechanisms used, such as VPNs and offshore workers, while Rolling Stone provides detailed examples of the Beyoncé and Pitbull concerts. All three outlets note that REPS did not immediately respond to requests for comment, and they agree that this case marks a new high in the scale of BOTS Act enforcement.

Why it matters

This case sets a precedent for enforcing the BOTS Act against large-scale ticket brokers, potentially impacting the secondary ticketing market and consumer access to popular events. The significant profit margins alleged suggest a systemic issue that could influence future regulatory actions and platform security measures.

What to watch

The case will proceed in the Southern District of California, with the DOJ seeking financial penalties. The FTC and DOJ have stated they will continue monitoring ticket brokers for BOTS Act violations. REPS & Co. has not yet responded to the lawsuit, and the outcome may influence future enforcement actions against similar entities.