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States Advance Legislation to Regulate Restaurant Reservation Resales

Illinois and Louisiana move forward with bills targeting unauthorized reservation platforms, following New York's lead in combating artificial scarcity and financial losses for restaurants.

Overview

  • Illinois's anti-reservation scalping bill has passed the state House unanimously and awaits Senate review, while Louisiana's measure is under consideration by the House Commerce Committee.
  • Both proposals would mandate agreements between restaurants and booking platforms, imposing penalties of up to $1,000 per violation for unauthorized reservation resales.
  • The legislation builds on New York's Restaurant Reservation Anti-Piracy Act, which took effect in February 2025 and serves as a model for similar reforms nationwide.
  • Restaurant groups argue that unauthorized resales create artificial scarcity, lead to no-shows, and harm businesses recovering from pandemic-related challenges.
  • Proponents of secondary marketplaces, like Appointment Trader, defend their platforms as offering consumer flexibility but acknowledge challenges such as bot exploitation.