Okay so my first thought was, why would the venues care, don't they have the ticket money anyway. Is there something I am missing about how these things are arranged, such that the venue doesn't get paid if people don't show up? If so, why?
Article: "...they told the venue they sold 150 tickets (a sell out) and only one person actually showed up who bought a ticket."
Even if they pay the band only after the show, the venue might get $16 for several hours of staffed operation.
People attending a show buy tickets, food, and drinks from the venue.
So, the band's payment is typically easily recouped because the venue expects a minimum guaranteed income (say 40% capacity, average of $6/attendee spent on incidentals).
If zero people show up, they have the expense without the income, having sacrificed the night that could have gone to a more popular band, while also paying workers and incurring utility expenses.
Basically we got to keep door sales if we guaranteed the venue a crowd.
Eventbrite lets you set aside free tickets, eg if you have VIPs / sponsors who should get free entry, which would make it look like you've "sold" more tickets than you really have.