StubHub Faces Texas Probe Over Ghost Ticketing Allegations

Texas Attorney General Ken Paxton has opened an investigation into StubHub (STUB) over allegations the company cancelled or failed to deliver World Cup tickets, a practice known as ghost ticketing.

Ghost ticketing occurs when a seller lists tickets they do not actually possess. The seller cancels the order after the price rises, leaving the buyer without admission. Regulators view the practice as deceptive because it can inflate market prices and harm consumers.

Paxton's office said the probe will examine whether StubHub violated Texas consumer protection laws. The investigation covers the company's handling of orders for World Cup matches and its procedures for verifying that listed tickets are real.

StubHub operates a secondary ticket marketplace. The platform connects buyers with individual sellers and professional brokers. Ghost ticketing has been a recurring issue across the industry. Several states have passed laws requiring platforms to confirm ticket inventory before listing.

The investigation introduces new legal exposure for StubHub. If Paxton's office finds widespread violations, the company could face civil penalties and forced changes to how it manages listings. The stock may come under pressure as investors assess the probe's scope.

Paxton has pursued high-profile consumer protection cases before. His office secured a $1.4 billion settlement with Meta Platforms in 2022 over privacy violations. The StubHub probe signals a similar willingness to target marketplace conduct.

The 2026 World Cup will be played across North America, with several matches in Texas. The state's role as a host venue makes the ticket marketplace a focus for regulators.

The probe is in its early stages. No timeline has been set for its conclusion.