Gov. Hochul Signs Law Making the Restaurant Reservation Black Market Illegal

Today, Governor Kathy Hochul has signed the Restaurant Reservation Anti-Piracy Act into law. “We’re putting an end to the predatory black market for restaurant reservations — protecting consumers and businesses, and giving everyone a chance to get a seat at the dinner table,” Hochul said in a press release from her office exclusively obtained by Eater. “New York is home to some of the best restaurants in the world, and whether you’re returning to your favorite local spot or trying out the latest in fine-dining, you deserve a fair system.” The bill first passed this summer in New York, a first-of-its-kind in the nation.

Legislation S.9365A/A.10215A is a reaction to the reservation wars in New York. With the rise of platforms like Resy, Opentable, Tock, and SevenRooms, digitization has gamified dining out in the city.

Headlines like “I made $70K selling NYC restaurant reservations — and I don’t even live in New York” have become all the more common as the savvy implement bots to (or manually work to) book up several reservations at a time, only to be sold in what’s being referred to as a “black market.” The bill intends to go after groups like the short-lived #FreeRezy, where reservation slots were traded over a group chat on the encrypted messaging platform Telegram. Essentially, it has created a dining culture in which those with money can buy a reservation, versus logging on to book one when they’re released. The reservation, which can range from hundreds to thousands, doesn’t even include the price of the meal.

The bill does not target legitimate trading platforms like the members-only Dorsia — only those that do not have authorization from the reservation platforms and the restaurants themselves. Likewise, of course, this bill is only relevant to a certain subset of restaurants in New York for which reservation mayhem continues to be an issue.

It’s worth noting, however, that there are perhaps some understandable reasons why the underground world of reservations developed in the first place. Groups like R/FoodNYC on Reddit have been spaces where people have traded reservations that we’re otherwise nonrefundable: an issue in recent years, if, let’s say, you had last-minute found out you had tested positive for COVID. (In June, a moderator for the Reddit group told Eater that anyone up charging on their non-refundable reservation trades could get banned).

But the reservation games have also allowed people to flake out on reservations as well as leave restaurants hanging when it comes to filling seats.

Assemblymember Alex Bores, who backed the bill, said this summer: “New Yorkers should not have to pay shady middlemen just for the right to a dinner reservation,” he said. “With this legislation, we are ensuring that families can celebrate a graduation, anniversary, or birthday without a $250, $500, or even $1,000 cover charge. We also protect restaurants from increased cancellations and protect workers from lost tips. A true win-win-win.”