StubHub Holdings stock fell 13% this week after the Washington, D.C. City Council passed the RESALE Act, which imposes a 10% cap on secondary-ticket sale markups effective January 1, 2027. Citigroup analyst Jason Bazinet estimated that if such caps average 15% for StubHub, its revenue could take a hit of around 30%, and if about 20% of its ticket sales are subject to legally mandated caps, its EBITDA could slide by roughly $95 million. D.C. joins Maine, Vermont, and Ontario in imposing legal caps on ticket resales, while similar measures are under consideration in New York, Massachusetts, California, and North Carolina. The law is part of a growing trend of jurisdictions targeting ticket resale markups, which are unpopular with consumers facing high live-event prices.
StubHub Holdings, Inc.Washington D.C. passed the RESALE Act capping ticket markups at 10%, directly impacting StubHub's revenue and EBITDA.