The United States men's soccer team has started the World Cup 2-0, and fans across the country couldn't be more excited. Bars nationwide are running promotions, but few have matched what one Washington, D.C., bar has done during the tournament.
TallBoy, a bar in Washington, D.C., gave fans a chance at a completely free bill on Friday when the United States faced Australia, thanks to a partnership with prediction market Kalshi. While patrons didn't receive free tabs, they still enjoyed a significant discount after the United States secured a two goal victory.
The Kalshi Promotion
TallBoy partnered with Kalshi for the United States' World Cup match against Australia on Friday. Because the U.S. won by two goals, patrons received a 50% discount on their bills.
Had the United States won by only one goal, customers would have received a 25% discount. Unfortunately for bar patrons, a three goal victory would have resulted in free tabs.
The United States jumped out to a 2-0 lead in the first half but failed to score after the break. While they kept Australia off the scoreboard, the lack of second half goals meant customers had to settle for a 50% discount.
According to TallBoy owner Peter Bayne, the bar previously ran the promotion during the Paraguay match when the United States won 4-1. Everyone's tabs were covered, resulting in the bar losing roughly $4,000. Even so, Bayne said it was well worth it.
The Origins of the Idea
Bayne, a former varsity soccer coach and lifelong soccer fan, wanted to go all out for the World Cup. He drew inspiration from a New York bar, The Jeffrey, during the NBA Finals. The bar covered up to $100 on tabs for Game 1 to capitalize on the Knicks frenzy throughout the city.
Bayne was connected with a Kalshi representative through one of his former players, which eventually led to the World Cup promotion.
Bayne said, "I had great odds of winning by three goals, and I got covered. So not only did TallBoy do well and my bartenders do well and all the customers got free tabs, so they obviously did the best, but the U.S. won and they looked phenomenal. And it just made the game so exciting."
Kalshi was interested in helping cover tabs because it has seen increased usage from small businesses. The effort is part of the company's grassroots marketing strategy, and it appears to be working as Kalshi continues to grow rapidly.
Bayne continued, saying, "It's a little bit harder to get comfortable with this as a business owner, and then you have to figure out what's your deal. I mean, not everything is going to be by the goals, like the way I structured it, or $100 off the way The Jeffrey structured it. And so I think people can get more creative with what the offering is and then figure out how to hedge that bet using a tool like Kalshi."
Bayne doesn't know whether he'll run the promotion again for the next United States match, but after falling one goal short of free tabs against Australia, there's a good chance it returns.
The Tradeoff Prediction Markets Take
Kalshi has consistently shown an ability to market its product, and its connection with local businesses is another example. The prediction market has experienced rapid growth, in part because of its aggressive marketing efforts.
The company's willingness to partner with businesses in places like Washington, D.C., shows it isn't afraid to compete directly with legal sports betting. Sports betting is legal in the district, but Kalshi has no plans to surrender market share.