Parlay Betting: A Complete Guide

Parlay betting adds a layer of excitement to the sports wagering experience.

Vocabulary.com defines parlay as exploiting a skill or resource in order to get something of greater value. In sports betting, it’s combining two or more wagers on a single betting ticket with the hope of earning a larger payout.

What Is Parlay Betting?

As mentioned, a parlay bet is two or more wagers combined onto a single bet slip.

There are positives and negatives to parlay betting, with the biggest plus being a larger payout for a winning ticket compared to individual wagers.

Parlay betting also allows bettors to utilize their knowledge of a certain team or sport to diversify their bets. Instead of throwing everything down on the outcome of one event, the risk can be spread across different games or events.

The biggest disadvantage of parlay betting is the greater risk of losing. All bets on the ticket have to win for the parlay to pay out, and more bets on the ticket increase the likelihood of losing. If one leg of the parlay ends up in a tie or ‘push’, that bet is dropped from the ticket, reducing the number of individual bets on the parlay by one, and decreasing the payout on a winning ticket.

How Parlay Betting Works

Most sportsbooks allow parlay betting on different markets, so bettors aren’t just wagering on Sunday NFL football, for example.

Most also allow props on a parlay card. Winning big with a multiple wager parlay seems like a good plan, and it is if you win; however, parlay betting is one of the riskier forms of sports wagering with a high probability of long-term losses if used frequently.

That shouldn’t stop bettors, though, especially with a well-constructed parlay and the chance for a much larger return.

Parlay Odds and Payouts

Determining parlay odds can be tricky when American odds are used.

In that case, convert positive American odds to decimal odds with the following formula: (odds / 100) +1. For negative odds, use this formula: (100 / odds) + 1. Once completed, multiply all the decimal odds for each bet in the parlay together, then multiply the result by the wager, say $10. Last, subtract the original bet ($10) to get the parlay odds.

For simplicity, our parlay consists of three bets each at -110. With decimal odds of 1.91 multiplied by three gives us 6.97. Next, multiply the number by 10 for 69.7. Finally, subtract the original stake from the number, and the decimal odds are 59.7. In American odds, that’s equivalent to +597.

Any sportsbook will calculate potential winnings from a parlay, but knowing the basics can be helpful.

Parlay Bet Example

Some people learn quicker from a visual, which is why an example of a parlay bet is used here. Again, a parlay combines two or more bets on a single ticket and is not limited to a specific sport or time frame.

Using the NFL for example, the parlay involves three spread bets:

Dallas -3 (-120)
Baltimore -7 (-130)
Buffalo +2.5 (+115)

Calculate the odds using the formula above for a potential payout of $596 on a $100 bet.

Bets from different sports are accepted on a parlay, such as taking Detroit to win the Super Bowl and the Dodgers to win their game on Tuesday.

Parlay vs. Single Bets

If you have confidence handicapping games and matchups, betting a parlay is a good way to go.

The biggest upside of a parlay is the potential for a bigger payout. But the downside is that all bets must win for a successful parlay.

One single-bet win on the same events used on a parlay still gives the bettor a return.

Parlay betting is a high-risk, high-reward strategy.

Bigger Payouts, Bigger Risk

Parlay betting offers a greater return on a successful ticket.

Using the same three events, with each boasting +100 odds, a three-bet parlay at $10 would win $70. Those same three events bet individually at $10 apiece would return $10 per bet or $30 total.

Yet, the chances of winning a parlay decrease significantly with each new bet introduced to the ticket. Using the standard -110 odds, there’s a roughly 27.5% chance of winning a two-bet parlay. That number drops to 7.5% with the addition of two more bets.

When Are Parlays Worth It?

Mathematically speaking, a parlay is almost never worth the risk, especially in the long run; however, larger payouts are always enticing, even to experienced gamblers, and they are available because they attract a good chunk of attention.

Backing several big favorites on a parlay is smart, considering those games on their own offer little value. Odds could be worked to a better-than-even-money payout on a multi-wager parlay.

Also, if a bettor has a considerable lean toward certain teams, those could be used in a parlay.

Sportsbooks occasionally offer promotions and bonuses on parlay bets, making them more attractive.

Types of Parlays

As the sports betting industry evolves, so does gambling on sporting events. Due to the potential of a windfall, parlays have become increasingly popular, and sportsbooks have added creative ways of parlay betting.

One of the more recent phenomena is same game parlays – kind of the all-you-can-eat buffet of parlay betting.

Still, traditional parlays remain a hot item at sportsbooks.

Traditional Parlays

When parlays first became a prominent betting method, they were limited to major sports like football, baseball, and horse racing. Though the parlay market has grown, bettors can still relive the past with traditional parlays.

The NFL and college football attract a massive handle, and traditional parlays are a staple.

At casino sportsbooks, it’s common to see a parlay card with a list of every game with spreads, totals, and a standard set of odds to determine parlay payouts.

Same Game Parlays (SGPs)

With same game parlays (SGPs), you place multiple bets from the same contest on a single ticket. The rules remain the same in that all legs of the parlay need to hit to earn a payout.

SGPs are potentially easier to cash since a bettor is handicapping just one game. Also, bets can consist of player or team props, unlike traditional parlays.

It’s a good strategy to correlate your parlay to ensure all bets make sense.

Round Robin Parlays

This is a more intricate form of parlay betting, but one that minimizes risk and still has the potential for a lucrative payout.

Round robin bets require the individual to build at least three separate parlays, each with a different line.

If there are three matchups you like, instead of building a regular parlay where all three bets need to win to cash the ticket. With the three teams, three different two-team parlays are created. You could still win even if one bet fails.

Parlay Betting Strategies

As with anything, having a solid plan and a strategy before entering into a parlay is a good idea.

The best plan is to research teams, players, and trends ahead of time for a better understanding of what might occur.

Also, limiting your parlay to two legs or three max increases your chance of success. The odds of winning a parlay increase dramatically with each bet added to the ticket.

Smart Leg Selection

Each individual bet within a parlay is called a “leg.”

While there is no crystal ball to offer the outcome of every sporting event, bettors can make smart decisions based on research.

If you consider a team or individual a lock and odds back that up, this is the smart leg on the parlay. Back up the smart leg with a pick that has more favorable odds, to lower odds on the smart leg.

Bankroll Management for Parlays

It’s easy to get sucked into the idea of large payouts offered through parlay betting. It’s also easy to see the bankroll diminish if those parlays fail.

Don’t chase the big payout by increasing the amount wagered on a parlay. Set a specific amount, stick to it, and never bet more than you can afford to lose.

Also, gain a better understanding of parlays and the math behind them. If new to parlays, a good idea is to start small.

Limiting Number of Legs

Increase your chances of parlay betting success by limiting the number of bets on a ticket to two or three.

It’s not called winning, and sportsbooks make a good chunk of change from failed parlays.

Using the typical -110 juice, the chances of winning a four-leg parlay decrease by about 7% from a three-leg ticket and 20% from a two-leg parlay.