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What entity should I link it too?
Can I create a new subgroup?
Or should I continue to store Events in my Campaign subgroup.
That depends on your requirement and if that shortcut is necessary for the users. It's just a shortcut to display all records from that table.
Answering your question, it's possible to add new subgroups for both standard and custom entities.
Thank you for your query.
As far as I know, there is no out-of-the-box entity named event.
About using the Campaign, it depends on what do you need to store as event. I guess, Campaign entity field set is very specific to marketing campaigns.
It is a good idea to create a custom table (entity) named Event and add the fields as per you requirement.
You can also relate Event entity with Campaign entity (for example 1-to-Many). This will allow you to run multiple campaigns for a specific event (however it depends on your business scenario).
Once the Event entity is created, you must include this in your app, so you can add this in your site-map (as a subgroup).
To create an entity:
Create an entity with Dynamics 365 for Customer Engagement | Microsoft Docs
Create and edit entity relationships | Microsoft Docs
To add new entity your app:
Add or edit app components with Dynamics 365 Customer Engagement (on-premises) | Microsoft Docs
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