A theater must have at least 500 seats and be in a specific part of Manhattan to be called a Broadway theater.

The Broadway League and the American Theatre Wing set the rules for these labels. A Broadway theater must have 500 or more seats and be located between 41st and 54th Streets in Manhattan. There are currently 41 theaters that meet these requirements. Off-Broadway theaters have between 100 and 499 seats. Any theater with 99 seats or fewer is called Off-Off-Broadway. These categories were created in the mid-1900s to help labor unions set fair rules for workers. Broadway shows must hire a specific number of stagehands and musicians based on these seat counts. The 500-seat rule also determines which shows can enter the Tony Awards. Only the 41 official Broadway theaters are eligible for these prizes. The Gershwin Theatre is the largest Broadway house with 1,933 seats. The Hayes Theater is the smallest with 597 seats. These large sizes help theaters sell enough tickets to pay for expensive costumes, lights, and sets.