The CEO of Houston-based Gallery Furniture lost $7 million on a promotion that promised to give customers who shopped at his stores their money back if the Seattle Seahawks won Sunday.

Gallery Furniture customers in Houston, Texas will see $7 million in refunds after owner Jim “Mattress Mack” McIngvale made a losing bet on this year’s Super Bowl game.

In a promotions move which many would call insane, the Houston gambler promised he would give a full refund to customers who spent $6,000 or more at his furniture store in the two weeks leading up to the game IF the Denver Broncos won the game.

I’m sure you heard by now that the Seahawks nearly massacred the Broncos with a 43-8 victory but when contacted about his loss, McIngvale said he was “thrilled” that he lost… and he should be!

Details + video below…

According to Houston’s ABC affiliate KTRK, McIngvale confirmed he would deliver on his promise with an announcement made via a sign in front of the store and postings online declaring ?Customers Win $7,000,000.?

?The accountant is pulling his hair out this morning, but the customers are happy and that?s what?s most important,? McIngvale said to ABC News.

McIngvale says while the accountant initially told him he was ?crazy? for making the bet,? he is confident it will pay in the long run for his business.

?It worked for making the customer say ?This guy does what he says he?s going to do,?? McIngvale said.

He said over 1,000 customers will receive on average $7,000 in refunds from the promotion. He plans to deliver the refunds during a celebratory party at the store on Feb. 17.

Companies usually protect themselves from losing big money through promotions like this by taking out insurance, but McIngvale said the gambler in him prevented him from doing that.

ABCNew reports that the store owner acknowledges that losing the money increases the value of the promotion as it further helps his brand break through the clutter and get more media attention.

“Doing a promotion like this creates affinity, creates trust with the customer, makes you relevant,” said McIngvale, who is nicknamed “Mattress Mack” and has been known in the marketing community for his renegade promotions.

“We already have people sending us videos of them jumping up and down celebrating, so I have no doubt that what we will lose is already worth it to our business.”

McIngvale, whose stores have been in business for 32 years, still says $7 million is a significant hit. He said it represents roughly 5 percent of the company’s annual revenues.

Customers who want to get their money back will have to wait. The company will have two “refund parties,” one Feb. 9 and one Feb. 23.

What do you think of McIngvale’s $7 Million promotional ‘loss’?

Smart move or dumb decision?