California Governor Gavin Newsom on Sunday signed Assembly Bill 1349 into law, targeting the sale of so-called “ghost tickets” in the live-event resale market. Ghost tickets refer to tickets listed by resellers before they actually possess them or have the legal right to sell them, a practice that has drawn sustained consumer complaints.

The legislation prohibits sellers from advertising, listing, or selling tickets they do not physically hold or have legal entitlement to, except when permitted by the event presenter or venue. It also bans the use of software designed to circumvent ticket purchase limits, queue systems, or presale restrictions. Additionally, the law restricts misleading advertisements or websites that make unauthorized resellers appear as official ticket sources. Sellers found in violation of these rules could face misdemeanor charges and penalties.

Despite signing the bill, Newsom expressed reservations, noting the law appears "uneven" by granting certain exemptions. He specifically called on the bill’s author, Assemblymember Isaac G. Bryan (D-Los Angeles), to revisit these provisions, which critics argue effectively exempt major resale platforms such as StubHub from key requirements.

The final version of AB 1349 excludes resale marketplaces from being classified as speculative ticket sellers but requires them to take “reasonable measures” to prevent such sales when knowingly or recklessly facilitated. The law also exempts professional sports teams and venues in California that directly control their ticket inventories.

The National Independent Venue Association (NIVA), which initially backed the bill, reversed its stance after the amendments. NIVA’s executive director, Stephen Parker, criticized the changes, stating the law now places smaller venues and nonprofit presenters at risk by allowing large resale marketplaces to avoid responsibility. He warned it endangers fans’ economic interests and missed the chance to fully address the ghost ticket problem.

During the bill’s legislative process, StubHub lobbied heavily against broad restrictions, reportedly spending $4.4 million across two years on this and related measures, according to nonprofit reports. Live Nation, Ticketmaster’s parent company, initially supported the bill but did not comment on the final outcome. StubHub accepted the amended version.

The signing of AB 1349 adds California to a growing list of states—including Maryland, Minnesota, and Maine—that have enacted laws curbing speculative ticket sales amid rising prices for concerts and sporting events. Lawmakers considered a separate measure that would have capped resale ticket prices at 10% above face value, but that bill stalled in a Senate committee last month.