After one of the fights, you will be interrupted by a strange character named Ziggy who wishes to see you by the inns entrance, at midnight.
Complete One on One: Flotsam, then exit the inn, but make sure you do this in the evening.
“King Ziggy, a man of noble birth, who was surrounding himself with men of despicable status, took note of Geralts fist fighting successes. He offered him a chance to participate in another tournament.
These were supposed to be fights for especially selected men. The participants glory and reward would be guaranteed. Ziggy tended to appear in front of the inn at the evenings, and it was there when Geralt met him again.”
When to start
After By the Gods – Stringing Up Sods, and after One on One: Flotsam side-quest.
Walk outside and talk to Ziggy. Accept his proposal and follow him to the fighting grounds, located inside Loredos residence. Notice that you have to drop your weapons when you enter the courtyard.
Continue to follow Ziggy and tell him that you are ready to fight.
If you managed to start this side-quest, you already know how to win a fist fight. At this point you must win four fights. Your first opponent is Twigs, followed by Matho and Tassledick, also known as Smugface. Each contestant is stronger than the previous one.
Your last fight is against Zdenek, but before the match, Loredo asks you to let Zdenek win. You have two options: accept the offer or reject it. If you accept, Loredo will trick you and you wont see any money, so make sure you refuse his offer.
Beat Zdenek, and take the coins from Loredo.
Note: When you exit the residence make sure you recover your swords, inside the chest, near the gate. Dont forget to equip Geralt.
Head towards the town-center but stay alert because Loredo’s men will come after you. Finish them quickly to complete the quest.