Nevada bill seeks to crack down on websites that “scalp” DMV appointments, restaurant reservations

LAS VEGAS, Nev. (FOX5) – An advancing Nevada bill seeks to crack down on websites accused of “scalping” appointments from the DMV and restaurants.

The founder of one of the most popular websites argues that countless consumers want options to “trade.”

Senate Bill 169 requires permission from a business or entity to sell spots or reservations. It creates penalties for sites that engage in sales without permission.

New York has already passed legislation in 2024 against restaurant “scalping,” and other states pursuing legislation include California, Florida, Illinois, Hawaii, Louisiana, according to the National Restaurant Association.

“Consumers are also misled into overpaying for reservations that were originally free, believing that they were directly booking with the establishment. The deceptive practice exploits limited availability, damages consumer trust and undermines fair business operations,” said State Sen. Fabian Donate at a hearing.

One of the most popular websites, appointmenttrader.com, was inspired by the creator’s two-day-long ordeal to get an appointment at a Las Vegas DMV. Though State Sen. Fabian Donate describes the practice as “pay to play” for a public service, founder Jonas Frey tells FOX5 his perspective.

“It’s not about making that appointment… now a ‘good that costs something,’ where it was free before. The reality is, before, it wasn’t available at all,” Frey said.

“The idea of Appointment Trader is to provide an efficient marketplace where you can exchange a time slot. So if you have a reservation for the DMV or if you have a reservation for a restaurant, you can give it to someone else and you get paid for giving it,” Frey said.

He told FOX5 that his site curbs excess listings and only allows a handful of posts from each user; users will be penalized for chronic unfulfilled listings.

The practice saves people money when they have to pay a no-show fee for a last-minute cancellation, Frey said, also stating that the site protects users’ information.

Restaurants like the popular Golden Steer, with a massive social media following and fan base from tourists and locals, explain how sellers and “scalpers” abuse the reservation system and make the wait and backlog even longer for legitimate customers.

“It really flared up last fall, when we had a guest call in attempting to make a reservation. They gave us their phone number and what popped up were something like 43 or 44 reservations that this single guest had over the next four to six weeks. It set off, of course, a huge red flag to us of what’s going on,” he said.

The practice among these sites, according to Nick McMillan, also creates a rise in “no shows”– which ultimately hurt small businesses and staff; restaurants also have no way to communicate with customers about crucial information for their reservations, he said.

Though legitimate booking sites have looked into the issue for Golden Steer, McMillan said there’s no telling how many of the reservations, which are made several months in advance, are from “scalpers.”

“Valentine’s Day, Mother’s Day, Father’s Day, Thanksgiving, Christmas Eve, Friday night, Saturday night: every every restaurant has these high-demand days. They’re just hurting all of these small businesses that can’t really fight back,” McMillan said.

FOX5 reached out to the Nevada DMV on the issue. A spokesperson provided the following advice for all Nevada residents:

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