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A New York City bar, The Jeffrey, is offering free drinks if the Knicks win Game 1 of the NBA Finals. To hedge the risk of this promotion, the bar's owner placed a $5,000 "YES" trade on Kalshi, a prediction market platform, betting on the Knicks to win. If the Knicks win, the trade is expected to pay out around $13,500, helping to offset the cost of the free drinks. If they lose, the owner loses the $5,000, but anticipates the promotion will still drive enough business to make the night profitable. This marks a documented instance of a small business using a prediction market for event risk hedging. The bar had a similar promotion during the Eastern Conference finals, offering 1% off tabs for every point the Knicks won by, costing them nearly $4,000 in revenue when the team won by 37 points. Kalshi, regulated by the CFTC, views its platform as "small business insurance," offering an alternative to expensive traditional insurance for businesses exposed to specific risks.