For the first time, it is legal to scalp tickets at a playoff series in Cleveland. And the Cavs are getting a cut. By using the Internet, the team allows season ticketholders to broker their seats for tonight’s playoff game at The Q for more than market value. Scalping on the street, however, is illegal.

Cleveland City Council changed the city’s anti-scalping law in June 2006 to allow ticketholders to resell their tickets at higher than face value. The move allowed Cleveland’s sports teams and entertainment venues to allow ticketholders to use their official sites to sell tickets….

Council sought to prevent unscrupulous scalpers from issuing counterfeit tickets for major events.

Insomniac browser for ticketing professionals

After the law passed, the Cavs in October created Flash Seats (www.Flashseats.com), where season ticketholders sell – with a transaction fee tacked on – to anyone who registers on the site. It’s the first of its kind in the NBA, and has become such a success that you won’t find as many scalpers tonight along Huron Road when the Cavs meet the Washington Wizards in Game 2. (Full Story)