Fortune is on scene at The Jeffrey, a small New York City bar that offered to cover everyone's tabs up to $100 if the Knicks win—and hedged the bet on Kalshi.

A New York City bar is joining in the Knicks mania — offering free drinks to patrons, and hedging the risk on Kalshi.

A Manhattan bar is using Kalshi as an insurance policy for a free-drinks promotion. This is the future prediction markets want.