New NJ Law Cracks Down On Restaurant Reservation Scalping

A new New Jersey law aimed at cracking down on restaurant reservation “scalping” could have a major impact on popular dining destinations across South Jersey shore towns and casinos

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Governor Mikie Sherrill signed legislation this week banning third-party companies from advertising, listing or selling restaurant reservations without permission from the restaurant itself.

The law targets a growing practice in which online services or brokers reserve tables at high-demand restaurants and then resell those reservations at inflated prices.

Supporters say the issue has become increasingly common during large tourism events and in destination markets where reservations are difficult to obtain — something familiar to many South Jersey restaurants during the summer tourism season in places like Atlantic City, Cape May, Ocean City and Wildwood.

Under the new law, third-party reservation platforms must have a written agreement with a restaurant before offering reservations for sale. Violators can face civil penalties of up to $500 per violation, with penalties potentially accumulating daily. Restaurants and consumers may also seek damages in court.

State Sen. Kristin Corrado said lawmakers wanted to prevent the kind of reservation price gouging seen around major sporting events in other states as New Jersey prepares to host matches connected to the 2026 FIFA World Cup.

Restaurant groups argued the practice hurts both customers and businesses by creating fake scarcity, inflated prices and last-minute cancellations that can leave tables empty during peak dining periods.

That concern could resonate strongly in South Jersey’s seasonal tourism economy, where restaurants often rely on packed summer weekends and special event traffic to make up a large share of annual revenue.

The measure passed unanimously in both the New Jersey Assembly and Senate before being signed into law.