Yeah, there's nothing new about being able to bet on your team winning a game

How do you mean he could have done this without a prediction markets? (Just general sprorts gambling...?)

denlillaapan

He thinks he can make $5k on additional drinks by offering a chance at free drinks and he thinks those free drinks will cost him less than $13.5k, so the bet (which in no way required a prediction market) gives him an expected profit in either scenario.

I guess Levine described it better, that he thinks there's a counter bet on the Knicks losing with better odds and he has unique access to.

Stacker_Sports

econ

Free Drinks if Knicks Win... A Real-World Use-Case for Prediction Markets!

It's more of an arb than a hedge, right? 

He thinks he can make $5k on additional drinks by offering a chance at free drinks and he thinks those free drinks will cost him less than $13.5k, so the bet (which in no way required a prediction market) gives him an expected profit in either scenario.

I guess Levine described it better, that he thinks there's a counter bet on the Knicks losing with better odds and he has unique access to.