Published on: June 2, 2026, 11:09 AM.
Updated on: June 2, 2026, 11:09 AM.
- A bar in New York City is promoting $100 free tabs contingent on a Knicks victory in Game 1 of the NBA Finals.
- The bar’s owner is utilizing prediction market Kalshi to support the promotion.
A lively NYC bar is inspired by Mattress Mack’s strategy, providing complimentary offerings based on the triumph of local sports teams in key matches.
Located in Manhattan’s Upper East Side, The Jeffrey is owned by attorney Andrew Freedman.
With the Knicks set to face the San Antonio Spurs, Freedman is prepared to cover patrons’ bills up to $100, provided the Knicks secure a win in Game 1 of theNBA Finals.
To mitigate his financial risks, Freedman has invested $5,000 in shares via Kalshi, betting on the Knicks’ victory for that night’s game.
“We want our patrons to revel in the excitement of the occasion, however, as a small business, we can’t absorb a full night’s earnings without caution. Kalshi allows us to make a bold promise to our customers with a safety net,” Freedman stated.
The potential winnings from Kalshi will help offset any losses incurred by the bar’s promotion.
“In case the Knicks don’t win, the bar would still reap significant revenue, having only invested a small sum for reassurance,” Freedman elaborated.
Promotions Covering Sports Events
Freedman isn’t a trailblazer in utilizing sports betting to shield his business from promotional losses. Mattress Mack, a Houston furniture mogul, is renowned for leveraging this strategy.
In 2019, Mattress Mack, also known as Jim McIngvale, placed a staggering $13 million bet on the Houston Astros winning the World Series, intending to cover a promotion where customers spending over $3,000 would receive a full refund if the Astros emerged victorious.
Although the Astros lost to the Washington Nationals in Game 7, Mattress Mack rebounded in 2022 with a whopping $75 million in bets on the Astros to win the same title. Houston won the series against the Philadelphia Phillies, granting many customers significant returns.
Kalshi’s Role in Hedging
Kalshi has stood by its event contracts as legitimate financial tools, pushing back against those who declare the contracts as mere sports betting. The firm believes Freedman’s promotional gamble exemplifies the strategic advantages their platform offers.
“These contracts are specifically designed for situations like this. If you hold a risk linked to a real-world event, prediction market contracts can act as a safeguard,” stated a Kalshi representative to MarketWatch.
Freedman has previously leveraged Kalshi for promotional hedging. The Jeffrey executed a similar campaign during the Knicks’ Eastern Conference Finals against the Cleveland Cavaliers, reducing bar tabs by 1% for every point the Knicks won by in Game 4, where the team excelled by 37 points.