New York’s effort to kill the “black market” for restaurant reservations became enforceable this winter. The Restaurant Reservation Anti-Piracy Act took effect February 17, 2025, after Governor Kathy Hochul signed it on December 19, 2024 — the first state law of its kind in the United States.
The law targets a practice that had spread across the city’s hardest-to-book restaurants: third-party platforms snapping up reservations and reselling them, sometimes for hundreds of dollars, to diners willing to pay for a table at places like Carbone. Hochul, at signing, said the bill would end the “predatory black market for restaurant reservations.”
What the law actually bans
The act is narrower than a blanket prohibition on reselling tables. As the law firm Holland & Knight noted in its analysis, it does not ban resale outright. Instead, it bars any person or platform from listing or selling a restaurant’s reservations on a website or app unless they have a written agreement with that restaurant.
In effect, the law requires reservation platforms to partner directly with operators before listing their tables. Services found in violation face fines of up to $1,000 per day, per restaurant — a structure designed to make systematic scalping uneconomic.
The New York State Restaurant Association, which backed the measure, framed it as a fairness issue: reservations are supposed to be free, and a secondary market let third parties profit while pushing access toward those who could pay a premium.
The platforms adapt
The clearest target was Appointment Trader, a marketplace that had let users buy and sell reservations. After the law took effect, the platform stripped out promotional features — restaurant names, location details and rankings — to avoid running afoul of the ban on listing and advertising specific reservations. By mid-2025 it was moving toward an AI-driven chat interface, an attempt to test how far the new rules reach.
The law did not touch the broader prepaid-reservation business. Membership service Dorsia, which charges annual fees and requires diners to prepay a minimum spend to lock in tables at sought-after restaurants, operates through arrangements with the restaurants themselves rather than reselling free reservations — placing it outside the conduct the act targets.
Still a contested market
More than a year on, the reservations economy remains unsettled. Reporting in March 2026 found the broader fight over reservation apps showing no signs of slowing, as platforms, restaurants and would-be resellers kept testing the boundaries of who controls a table and who profits from it. New York’s law reshaped the rules of that fight — but did not end it.
Verification
- Restaurant Reservation Anti-Piracy Act signed December 19, 2024; effective February 17, 2025; first such state law; “predatory black market” quote — Governor’s office: https://www.governor.ny.gov/news/bon-appetit-governor-hochul-signs-legislation-cracking-down-black-market-restaurant
- Law bans unauthorized listing/sale without a written restaurant agreement; does not ban resale outright — Holland & Knight: https://www.hklaw.com/en/insights/publications/2025/02/new-york-curbs-scalping-of-restaurant-reservations
- Effective date and $1,000-per-day-per-restaurant fines — Brooklyn Eagle: https://brooklyneagle.com/articles/2025/01/09/new-york-to-end-restaurant-reservation-scalping-with-bill-that-goes-into-effect-in-february/
- Appointment Trader strips promotional features, tests law with AI interface; NY State Restaurant Association position — Columbia News Service: https://columbianewsservice.com/2025/07/28/new-york-banned-reservation-resales-now-appointment-trader-is-testing-the-law-with-ai/
- Dorsia prepaid model; reservation wars continuing in 2026 — CNN Business: https://www.cnn.com/2026/03/17/business/restaurant-reservations-apps-markets
Frequently Asked Questions
- What does the Restaurant Reservation Anti-Piracy Act do?
- It prohibits third-party services from listing or selling a restaurant's reservations on a website or app unless they have a written agreement with that restaurant. It does not ban resale outright; it bans unauthorized resale.
- When did the law take effect?
- Governor Kathy Hochul signed it on December 19, 2024, and it took effect February 17, 2025. New York was the first state to enact such a law.
- What are the penalties?
- Reservation services found in violation can face fines of up to $1,000 per day, per restaurant.
- How did resale platforms respond?
- Appointment Trader, which had let users buy and sell reservations, was forced to remove promotional features like restaurant names, locations and rankings, and later moved toward an AI-driven interface to test the law's limits.