While most Los Angeles bars were hoping for the Dodgers to pull through for another World Series run, one local bar group bet $60,000 against it, and the bet paid off. The anonymous group operates 25 bars, many of which are located near Dodger Stadium, and made the trade through the mobile app Kalshi.
The group put about $60,000 on the Dodgers not making the World Series, and their prediction paid off. The Dodgers’ elimination meant the group’s position returned nearly double what it initially put in, although the exact profit figure hasn’t been disclosed.
The reason the group made the bet was more financially strategic than a mere dislike of the Dodgers. The Dodgers winning means more foot traffic from playoff and World Series customers, bringing in more revenue for the bars, even if the group loses their $60,000 position. If the Dodgers lost, on the other hand, the bars miss out on that additional foot traffic and revenue, but the position pays off to help offset the loss.
Kalshi is a financial exchange and prediction market that allows users to trade contracts based on the outcome of real-world events, ranging from sports and politics to economics and weather.
Betting expert Doug Kezirian described the strategy as an approach for businesses to protect themselves against any financial risks that may not be covered by traditional insurance. “Sometimes businesses have decisions to make, and they’re doing the prudent thing,” Kezirian told CBS Los Angeles.
Downtown L.A.’s 28 Wishes Ice Cream Shop has also used Kalshi’s weather market as a hedge against business slowing when temperatures drop. The shop’s sales fall about 20% when temperatures dip below 70 degrees. Weather market payouts have reached up to $1,500 per month, which is equivalent to around 43% of the shop’s rent during that time, according to Kalshi.
Kalshi has not identified the company that placed the bet.
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