What is a Parlay Bet? A Comprehensive Guide to Parlay Betting

In the dynamic world of sports betting, a parlay bet stands out as an exciting option for those looking to amplify the thrill and potential payouts. A parlay, also known as an “accumulator bet” or “multi” depending on the sportsbook and region, is a single wager that combines two or more individual bets. To win a parlay, the bettor must successfully predict the outcome of every individual bet within the parlay. Failing on just one leg of the parlay means the entire bet is lost. While this might sound risky, sportsbooks often incentivize parlay betting by offering significantly higher payouts compared to placing each bet individually. This increased payout is the major draw for many bettors, promising a larger return for a smaller initial stake.

Key Takeaways:

• A parlay bet is a single sports wager combining two or more individual bets (legs).
• Sportsbooks, like BetMGM, FanDuel, and DraftKings, facilitate parlay betting.
• Parlays are riskier than single bets because all legs must win for the parlay to pay out.
• The appeal of parlays lies in their potential for higher payouts due to combined odds.
• Online betting platforms prominently feature parlay options for various sports.

How to Place a Parlay Bet

Creating a parlay bet is a user-friendly process, especially with the intuitive interfaces of modern online sportsbooks. To get started, you’ll first need to choose a reputable sportsbook. Popular platforms like BetMGM, FanDuel, and DraftKings are excellent choices, known for their comprehensive betting markets and user-friendly experiences.

Once you have an account and are logged into your chosen sportsbook, navigate to the sports or events you’re interested in betting on. Whether your passion is football, basketball, baseball, or any other sport, you’ll find a wide array of betting options available for each game. These options typically include point spreads, moneylines (betting on the outright winner), and totals (over/under bets on combined scores).

To construct your parlay, you need to select at least two different bets. Browse through the available games and betting markets and click on the individual bets you want to include in your parlay. Each selection you make will be automatically added to your bet slip, which is usually located on the side or bottom of your screen for easy access.

After you have made all your desired selections (remember, at least two for a parlay), go to your bet slip. Here, you should find an option to combine these individual bets into a parlay. The sportsbook’s system will automatically calculate the combined odds for your parlay based on the odds of each individual bet you’ve chosen. For example, on platforms like BetMGM or FanDuel, after combining your selections into a parlay, you will immediately see the potential payout displayed, showing you what you stand to win if all your selected bets are successful.

It’s crucial to understand that while parlay bets can be enticing due to their potential for large payouts, they are inherently riskier than single bets. Casual bettors should approach parlays with caution. They are not a reliable investment strategy and are best viewed as a form of entertainment that carries a significant risk of loss.

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Alt text: DraftKings sportsbook interface showcasing parlay betting options on a desktop computer.

Deciphering Parlay Payouts: Calculating Your Potential Winnings

Understanding how parlay payouts are calculated can initially seem complex, particularly due to the various formats used to express odds in sports betting. However, sportsbooks typically simplify this process by automatically calculating and displaying the potential winnings for your parlay on your bet slip. While you can always rely on the sportsbook’s calculation, understanding the underlying math can empower you to make more informed betting decisions.

To manually calculate a parlay payout, follow these steps:

1. Convert American Odds to Decimal Odds: American odds, often displayed with a plus (+) or minus (-) sign, are common in the United States. To convert them to decimal odds, which are easier for parlay calculations:

   • For positive odds (e.g., +150): Divide the odds by 100 and add 1. So, +150 becomes (150/100) + 1 = 2.50.
   • For negative odds (e.g., -110): Divide 100 by the absolute value of the odds and add 1. So, -110 becomes (100/110) + 1 = 1.91 (approximately).

2. Multiply the Decimal Odds: Once you have converted the American odds for each leg of your parlay into decimal odds, multiply all these decimal odds together.

3. Multiply by Your Stake: Take the result from step 2 and multiply it by the amount you are betting (your stake).

4. Calculate Net Profit: Subtract your original stake from the result in step 3 to determine your net profit from the parlay bet.

Let’s illustrate with an example: Suppose you are parlaying three bets, each with odds of -110 (American odds).

1. Convert to Decimal Odds: -110 American odds converts to approximately 1.91 decimal odds for each leg.

2. Multiply Decimal Odds: 1.91 x 1.91 x 1.91 = 6.97 (approximately).

3. Multiply by Stake: If you bet $10, multiply 6.97 x $10 = $69.70.

4. Calculate Net Profit: $69.70 – $10 (stake) = $59.70 net profit.

Therefore, this parlay would pay out $59.70 in profit for every $10 wagered. In American odds terms, this payout is equivalent to +597, meaning you win $597 for every $100 bet, or nearly 6-to-1 odds. A useful rule of thumb for parlays with -110 odds is that a two-leg parlay pays around 2.6-to-1, and a three-leg parlay pays approximately 6-to-1. As you add more -110 legs to a parlay, the odds roughly double with each addition.

Parlay Bets vs. Teaser Bets: Understanding the Difference

While both parlay bets and teaser bets involve combining multiple selections into a single wager, they are distinct types of bets with different mechanics and risk-reward profiles. The key difference lies in the adjustment of point spreads or totals.

In a standard parlay bet, the point spreads and totals are fixed at the sportsbook’s standard offerings. All of your chosen selections must win at these set lines for your parlay to be successful.

A teaser bet, on the other hand, is a variation of a parlay that allows you to adjust the point spreads or totals in your favor. This adjustment, however, comes at the cost of reduced potential payouts. In a teaser, you can “tease” or move the spread by a predetermined number of points (commonly 6, 6.5, or 7 points, particularly in football and basketball) for each game included in your teaser.

For example, if a football team is a 7-point favorite, you could use a 6-point teaser to reduce the spread to just 1 point. This makes it significantly easier for that team to cover the spread within your teaser bet, increasing your chances of winning that leg. However, because you are getting more favorable lines, the odds and consequently the potential payout of a teaser bet are lower than those of a standard parlay with the same number of selections.

The core trade-off between parlays and teasers is risk versus reward. Parlays carry a higher risk because you are betting on standard lines, but they offer much higher potential payouts due to the compounding of odds. Teasers reduce your risk by giving you more lenient lines, but this comes with the trade-off of smaller potential winnings. Choosing between a parlay and a teaser depends on your risk tolerance and betting strategy.

Advantages of Parlay Betting: Why Bettors Choose Parlays

Parlay bets, despite their inherent risks, offer several compelling advantages that attract many sports bettors:

• Elevated Payout Potential: This is arguably the most significant allure of parlay bets. By combining multiple bets, the odds multiply, leading to substantially higher potential payouts compared to placing the same bets individually. For example, a $10 parlay with three legs, each at +100 odds (even money), could yield a payout of $70, whereas placing those three $10 bets separately would only return $10 profit per bet, totaling $30 in profit.

• Enhanced Excitement for Fans: Parlays can dramatically intensify the excitement of watching sports events. When you have a parlay in play, you are invested in multiple games simultaneously, turning an ordinary game day into a nail-biting experience as you track the progress of each leg. Instead of just focusing on one game, a parlay bet can span across multiple games throughout a day or even across several days, extending the thrill and engagement.

• Strategic Bet Diversification: While it might seem counterintuitive, parlays can be used as a form of bet diversification. By combining bets across different games or events, you are not relying on the outcome of a single event to win. Although the overall parlay is a single wager, its success is dependent on the combined outcomes of multiple events, potentially spreading your risk across different games and teams.

• Attractive Promotions and Bonuses: Sportsbooks frequently offer promotions and bonuses specifically tailored to parlay bets, further enhancing their appeal. These promotions can include parlay insurance, where you might get your stake back if only one leg of your parlay loses, or boosted odds on parlays, which increase the potential payout even further. These sportsbook incentives can make parlay betting more attractive and potentially more profitable.

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Alt text: A group of friends excitedly watching a sports game at a bar, possibly following their parlay bets on the screen.

Parlay in Everyday Language: Beyond Sports Betting

Interestingly, the term “parlay” extends beyond the realm of sports betting and finds use in everyday language. In general usage, “parlay” means to use or leverage an existing asset or situation to achieve something of greater value or success. For example, someone might say they “parlayed their excellent communication skills into a successful sales career,” meaning they used their communication skills as leverage to build a thriving career in sales. This broader meaning of “parlay” highlights the core concept of leveraging something to gain a multiplied or enhanced outcome, mirroring the principle behind parlay bets in sports betting.

Risks Associated with Parlay Bets: The Downsides to Consider

Despite the enticing potential payouts and excitement, parlay bets come with significant risks that bettors need to be fully aware of:

• Elevated Risk of Losing Your Stake: The most prominent disadvantage of parlay bets is the heightened risk of losing the entire wager. In a parlay, perfection is required. Every single selection within the parlay must be successful for the bet to win. If even just one leg of your parlay loses, the entire parlay is considered a loss, regardless of how many other selections were correct. This “all-or-nothing” nature significantly increases the risk compared to single bets.

• Lower Probability of Winning: Parlay bets inherently have a lower probability of winning compared to individual bets. While each individual bet within a parlay might have a reasonable chance of winning on its own, the probability of all those bets winning simultaneously decreases dramatically as you add more legs to the parlay. For instance, if each leg of a three-leg parlay has a 50% chance of winning, the overall probability of winning the parlay is 0.50 x 0.50 x 0.50 = 0.125, or 12.5%. This lower win probability underscores that while payouts can be large, hitting a parlay bet is statistically less likely.

• Increased Betting Strategy Complexity: Crafting a consistently successful parlay betting strategy demands a more sophisticated and complex approach than simply placing single bets. Bettors need to conduct in-depth analysis of multiple games or events, considering various factors that could influence each outcome. This might involve analyzing team form, player statistics, head-to-head records, weather conditions, and even the potential impact of one game’s outcome on another, especially if games are played sequentially. Furthermore, over longer timeframes, unforeseen uncertainties like player injuries, trades, or shifts in team strategies can become more significant variables to consider.

• Potential for Delayed Cash Flow: Parlay bets can sometimes tie up your betting funds for extended periods, leading to potential cash flow delays. For example, a parlay bet could include selections on events that are spread out over a long duration, such as betting on both the Super Bowl winner and the World Series winner in a single parlay. In such cases, your bet might not be fully settled and your winnings (if any) not released until months later, from February (NFL season end) to potentially November (MLB season end). This delay can have implications regarding the time value of money, as your funds are locked up and unavailable for other potential betting opportunities or uses during that time.

Cashing Out Parlay Bets Early: A Strategic Option

Many modern sportsbooks offer a “cash out” feature for parlay bets, providing bettors with the option to settle their wagers before all legs of the parlay have concluded. This feature adds a layer of strategic flexibility to parlay betting, allowing you to manage risk and potentially secure profits before all outcomes are decided.

For instance, imagine you have placed a four-leg parlay, and the first three legs have already won. You might feel uncertain about the outcome of the final leg. In this scenario, the cash out feature allows you to take a guaranteed profit at that moment, rather than risking the entire parlay on the uncertain outcome of the last game. Cashing out early essentially lets you lock in winnings or minimize potential losses based on the current status of your parlay.

However, it’s important to understand that cashing out early comes with certain conditions and is not always available for all parlay bets. Each sportsbook has its own policies regarding cash outs, and the availability and terms can vary depending on factors such as the number of legs in the parlay, the types of bets included, and whether the bets are in-play or pre-match. Some sportsbooks, like BetMGM, FanDuel, or DraftKings, may restrict early cash outs to specific events or situations, such as live betting scenarios.

Furthermore, the amount offered for a cash out will typically be less than the potential full payout if you were to let the parlay run its course and all legs were to win. The cash-out amount is calculated by the sportsbook based on the current odds and probabilities of the remaining legs being successful. While cashing out can secure a guaranteed return, it often means forgoing a potentially larger payout if all your selections ultimately win. It’s a strategic decision that requires weighing the certainty of a smaller profit against the risk and potential reward of letting the parlay ride.

If you or someone you know has a gambling problem, help is available. Call the National Problem Gambling Helpline at 1-800-522-4700, or visit ncpgambling.org/chat to connect with a helpline specialist.

Parlay Bet Example: Putting it into Practice

Let’s consider a practical example to illustrate how a parlay bet works in a real-world scenario. Suppose a bettor believes that the Dallas Cowboys (+3.5 point spread) and the Green Bay Packers (-2.5 point spread) will both cover their respective spreads in an upcoming NFL Sunday.

They decide to wager $10, and instead of placing two separate $5 bets on each team, they choose to parlay these two selections. If they were to bet $5 individually on each team to cover, and both teams succeeded, their approximate winnings would be around $19 in total.

However, by parlaying these two bets, the potential payout increases significantly. If both the Cowboys and the Packers cover their spreads, the parlay bet wins, and the payout would be approximately 2.65 times the initial bet. In this example, a $10 parlay bet could yield a win of around $26.50.

Here’s a breakdown of the possible outcomes of this two-team parlay:

• Both Cowboys and Packers cover their spreads: Win – Payout of approximately $26.50 (profit of $16.50).
• Cowboys cover, Packers do not cover: Loss – Entire $10 parlay bet is lost.
• Packers cover, Cowboys do not cover: Loss – Entire $10 parlay bet is lost.
• Neither Cowboys nor Packers cover: Loss – Entire $10 parlay bet is lost.

This example clearly shows how a parlay amplifies both the risk and the potential reward compared to individual bets. Parlays can also become much more complex, involving numerous individual bets. A bettor might choose to parlay five or more teams to cover their spreads. While the risk escalates with each added leg (as only one loss ruins the entire parlay), the potential payouts can become very substantial. For instance, a five-team parlay at typical spread betting odds could offer payouts around +2335 or even higher, meaning a $10 bet could potentially return over $230 in profit if all five teams cover.

Frequently Asked Questions About Parlay Bets

How Does a Parlay Bet Function?

In sports betting, a parlay is created when a bettor combines multiple individual wagers – at least two, but often more – into a single, unified bet. The defining characteristic of a parlay is its “all-or-nothing” nature. If any single bet within the parlay loses, the entire parlay bet is lost. Conversely, if all the individual bets within the parlay are successful, the bettor wins a significantly larger payout than they would have received by placing each bet separately. This increased payout is due to the multiplication of the odds of each individual bet within the parlay.

What Happens to a Parlay Bet if a Game is Canceled?

In the event of a canceled game within a parlay bet, most sportsbooks have a standard procedure. Typically, the canceled game leg is simply removed from the parlay. For example, a three-game parlay would become a two-game parlay. The odds and potential payout of the parlay are then recalculated based on the remaining legs. It’s always advisable to check the specific rules of the sportsbook you are using, as policies on canceled games and other contingencies can vary slightly between different sportsbooks.

Why Are Parlay Bets Often Discouraged for Serious Bettors?

While parlays can be enticing due to their large potential payouts, they are often discouraged as a primary betting strategy, especially for bettors focused on long-term profitability and positive expected value. For a parlay bet to have a positive expected value, almost all, if not all, of the individual bets within the parlay must themselves have a positive expected value. Due to the multiplicative nature of parlay odds, the sportsbook’s edge (vig or juice) is also compounded across all legs of the parlay, making it statistically more challenging to achieve long-term profitability with parlays compared to focusing on single, well-researched bets with positive expected value. Parlays are generally considered to favor the sportsbook in the long run.

The Bottom Line: Parlay Bets – High Risk, High Reward

Parlay bets represent a unique and popular form of sports wagering, characterized by combining two or more individual bets into a single wager. They are also known as accumulator bets or multis in some regions. The defining feature of a parlay is that all component bets must win for the parlay to be successful. While this increases the risk significantly compared to single bets, parlay bets offer the enticing prospect of much larger payouts due to the multiplication of odds. Parlays can amplify the excitement of sports betting and offer opportunities for substantial wins, but bettors should be acutely aware of the increased risk and lower probability of winning associated with these types of wagers. They are best approached with a clear understanding of their mechanics and risk-reward profile.