Small businesses roll the dice on Kalshi to manage their risks

Hundreds of small businesses are using the prediction market to hedge against a range of business risks, according to Kalshi. Here's how. Brenden Theaters typically sees a surge in sales during the summer, before business at the regional movie chain drops off sharply in the fall. This year, it's trying a new strategy to even out revenue: using a prediction market. The Las Vegas, Nevada-based company, which has seven locations across four states, is joining the growing number of small businesses using Kalshi to hedge financial risk. Robert Lytle, the chief operating officer for Brenden, said the theater chain requested a new market on the prediction market that lets people wager on the number of films studios release each quarter.

If fewer than 60 movies are released, the company is paid under the Kalshi contract. If the slate comes in higher, Brenden loses money on its Kalshi bet, but then can expect to offset the loss as higher ticket sales drive revenue growth. "It's almost an insurance policy, if you will," Lytle told CBS News. Since Kalshi launched its prediction market in 2021, the New York company has enabled users to bet on the outcome of sports, elections, weather, government policy, celebrity news and many other events. Now, Kalshi is also inviting small businesses to use the "event contracts" traded