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Updated 06/03/2010 05:59 AM

The debate over paperless tickets

By: Britt Godshalk

Imagine heading to the gate at a concert or ball game, swiping your credit card and just walking in. It's called a paperless ticket, a way of purchasing your seat without ever holding a piece of paper. It's a relatively new technology. And now New York lawmakers must determine whether it should be regulated. Our Britt Godshalk reports.

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ALBANY, N.Y. -- "You don't stop a game in the first inning," said Randy Levine, the president of the New York Yankees.

Levine urged lawmakers Wednesday not to regulate paperless ticketing in New York while the technology is still in its infancy.

"Let's see how it works and go from there," said Levine. "If it doesn't work, it's in our business interest to stay with paper tickets."

Before a one year extension on the law legalizing resale of tickets in New York can be passed, lawmakers must first determine if they should restrict how paperless ticketing is done. The Yankees and Broadway don't yet use the technology, but Madison Square Garden says some performers request paperless ticketing to keep prices at face value for fans and then the tickets are then easily transferable as long as it's done through MSG's system. A bill by the governor would allow consumers to resell paperless tickets through an outside broker. The Yankees are crying foul because that would require them and other ticket agencies to either offer a paper ticket option or force them to work with outside brokers.

"These are our tickets, our data bases," said Levine. "So that's a phony issue. You can't have a paperless system if the operator is not allowed to do it."

But brokers say operators are stealing the show from them as well as consumers.

"Once a consumer purchases that ticket, they should own the right to do with it what they want," said Dan Pullium, the director of government relations for Ticket Network. "Give consumers the option to choose the method that best suits their opportunities."

"I believe that's where the government should step in," said Leor Zahavi, founder of AdmitOne.

"Let's not try to portray it as some noble attempt to protect consumers," said Levine. "It is far from that."

So to regulate or not regulate? That is the question. Lawmakers say they hope a resolution will be made on this issue by the time the curtain falls on this session - June 21st.