New York bar spends $5,000 to hedge Knicks free-drink promotion via Kalshi

Odaily reports: During Game 1 of the NBA Finals, The Jeffrey, a bar on Manhattan's Upper East Side, launched a promotion offering free drinks to all customers if the New York Knicks won. The bar also invested $5,000 on the prediction market Kalshi to open a hedging position, purchasing "Knicks win" contracts. If the Knicks win, the bar must cover customer tabs, but profits from the Kalshi contract offset the losses; if the Knicks lose, the bar does not need to offer free drinks, incurring only the hedging cost. Bar owner Andy Freedman said this move allows the bar to run bolder marketing campaigns while controlling risk.