What is a Parlay Bet? A Beginner's Guide to Parlay Betting

Parlay bets are the spice in the world of sports betting, offering the tantalizing prospect of turning a small stake into a significant win. Imagine the thrill of not just one, but multiple predictions coming true, all combined into a single, exhilarating wager! In sports betting, a parlay bet is exactly that – a combination of two or more individual bets rolled into one. Depending on the sportsbook you’re using or where you are in the world, you might also hear them called “accumulators” or “multis.”

The catch? To win a parlay, every single bet within it must be a winner. Just one incorrect prediction, and the entire parlay bet is lost. This all-or-nothing nature is what makes parlays both risky and potentially very rewarding. Sportsbooks are keen on parlays because of this higher risk, often sweetening the deal with larger payouts as you add more selections, or “legs,” to your parlay. While they demand a higher degree of accuracy, the amplified payouts are what draw many bettors to the parlay’s exciting, high-stakes nature. Mobile betting platforms like BetMGM, FanDuel, and DraftKings prominently feature parlay options, making them easily accessible for those looking to add an extra layer of thrill to their sports viewing.

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Alt text: Mobile phone screen showing a sportsbook app with parlay betting highlighted.

Understanding Parlay Bets in Detail

At its heart, a parlay bet is a sequence of individual wagers linked together. Think of it as building a chain, where each link represents a bet you’re making on a separate game or event. These individual bets, known as “legs,” can range from simple moneyline bets (picking the winner of a game) to more complex wagers like point spreads or over/under totals.

The defining characteristic of a parlay is its multiplier effect. Instead of placing each bet separately, in a parlay, your winnings from the first bet automatically roll over as the stake for the next, and so on. This compounding effect is what drives up the potential payout dramatically. However, this also means the risk is amplified. If any single leg of your parlay loses, the entire bet fails, and you lose your initial stake. It’s this high-risk, high-reward dynamic that makes parlay betting a unique and often thrilling experience for sports bettors.

How to Place a Parlay Bet: A Step-by-Step Guide

Creating a parlay bet is a straightforward process, especially with today’s user-friendly online sportsbooks. Here’s a simple guide to get you started:

Choose Your Sportsbook: Begin by logging into your preferred online sportsbook. Popular platforms like BetMGM, FanDuel, and DraftKings are excellent choices, known for their comprehensive betting options and user-friendly interfaces.
Navigate to Your Sports: Once logged in, browse to the sport you’re interested in betting on. Whether it’s the NFL, NBA, MLB, or any other sport, select the games or events you want to include in your parlay.
Select Your Bets (Legs): For each game, explore the available betting markets. You can choose from various bet types, including:
- Moneyline: Betting on which team will win the game outright.
- Point Spread: Betting on the margin of victory, where the favored team must win by more than a specified number of points, or the underdog can lose by less or win outright.
- Totals (Over/Under): Betting on whether the total combined score of the game will be over or under a specified number.
Click on the odds of each individual bet you want to add to your parlay. Each selection will be added to your virtual bet slip.
Combine into a Parlay: Once you’ve selected at least two bets, your bet slip will typically recognize that you have multiple selections. Look for an option to combine these bets into a parlay. This is usually clearly indicated, often with a “Parlay” or “Multi Bet” tab.
Review Odds and Payout: The sportsbook will automatically calculate the combined odds for your parlay. This will show you the potential payout if all legs of your parlay are successful. Enter the amount you wish to wager and confirm your bet.

Before placing your parlay, always double-check your selections and the potential payout. Ensure you understand the risk involved and only bet what you can afford to lose.

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Alt text: Digital bet slip example showing multiple selections combined into a parlay bet.

Calculating Parlay Bet Payouts: Understanding the Odds

The allure of parlay bets lies in their amplified payouts, but understanding how these payouts are calculated can seem a bit complex at first. Sportsbooks will always display the potential winnings on your bet slip before you place the bet, but knowing the underlying math can empower you to make more informed betting decisions.

The key to parlay payouts is the multiplication of odds. Since each leg of the parlay must win, the odds for each individual bet are multiplied together to determine the overall parlay odds. Here’s a simplified approach to calculating potential payouts:

Convert American Odds to Decimal Odds: If you’re in the US, sportsbooks often use American odds (e.g., -110, +200). To make calculations easier, convert these to decimal odds.
- For negative odds (-110): Decimal Odds = (100 / (Absolute Value of American Odds)) + 1 => (100 / 110) + 1 = 1.91
- For positive odds (+200): Decimal Odds = (American Odds / 100) + 1 => (200 / 100) + 1 = 3.00
Multiply Decimal Odds: Multiply the decimal odds of each leg in your parlay together.
- Example: Leg 1 odds: 1.91, Leg 2 odds: 1.91, Leg 3 odds: 1.91. Combined Decimal Odds = 1.91 x 1.91 x 1.91 = 6.97
Calculate Total Payout: Multiply the combined decimal odds by your stake (the amount you bet).
- Example: Stake = $10. Total Potential Payout = 6.97 x $10 = $69.70
Calculate Net Profit: Subtract your original stake from the total payout to find your net profit.
- Example: Net Profit = $69.70 – $10 = $59.70

Therefore, a $10 parlay bet with three legs at -110 odds each would yield a profit of approximately $59.70, or a total payout of $69.70. In American odds, this payout is expressed as +597.

Rule of Thumb for -110 Odds: A helpful shortcut for parlays with legs that are all at -110 odds:

Two-leg parlay (double parlay): Pays around 2.6 to 1
Three-leg parlay (triple parlay): Pays around 6 to 1
For each additional -110 leg added, the odds roughly double.

While sportsbooks automatically calculate and display potential payouts, understanding this calculation gives you a clearer picture of the risk and reward involved in parlay betting.

Parlay Bets vs. Teaser Bets: Knowing the Difference

While both parlay bets and teaser bets combine multiple selections into a single wager, they are fundamentally different in their approach to odds and risk. Understanding this distinction is crucial for strategic sports betting.

Parlay Bet:

Standard Odds: Uses the standard point spreads, moneylines, or totals offered by the sportsbook.
Higher Risk, Higher Reward: All selections must win at their original odds for the parlay to pay out. Higher potential payouts due to compounded odds.

Teaser Bet:

Adjusted Spreads/Totals: Allows you to adjust the point spreads or totals in your favor, making it easier for your selections to win. Typically offered in football and basketball.
Lower Risk, Lower Reward: Because you’re getting more favorable lines, the potential payout is reduced compared to a standard parlay.

Example:
Let’s say the point spread for a football game is Team A -7 points.

Parlay: You bet Team A -7 in a parlay. Team A must win by more than 7 points for this leg to win.
Teaser: You might be able to “tease” the spread to Team A -1. Now, Team A only needs to win by more than 1 point for this leg to win. However, the odds of your teaser bet will be lower than if you had included Team A -7 in a standard parlay.

Key Difference: Teaser bets essentially trade payout potential for a reduced risk of losing by adjusting the point spreads or totals. Parlays stick to the standard lines, offering higher payouts for correctly predicting multiple outcomes at those original odds. Teasers are often seen as a way to increase your chances of winning a multi-bet wager, albeit with a smaller return.

Advantages of Parlay Bets: Why Bettors Are Drawn To Them

Despite the inherent risks, parlay bets hold considerable appeal for many sports bettors. Here are some key advantages:

Elevated Payout Potential: This is the primary draw. Parlays offer the chance to win significantly more than placing the same bets individually. By compounding the odds of each leg, even a small stake can transform into a substantial payout if all predictions are correct. For example, a $10 three-leg parlay, where each leg has +100 odds, could potentially return $70, compared to just $30 if the same bets were placed separately ($10 profit per individual bet).
Heightened Excitement and Engagement: Parlays amplify the thrill of watching sports. With a parlay in play, you’re invested in multiple games or events simultaneously. Every leg becomes crucial, and the sweat of tracking multiple outcomes adds a layer of excitement that single bets often can’t match. Imagine a Sunday of NFL games where your parlay hinges on the outcome of games throughout the day – the rollercoaster of emotions can be incredibly engaging.
Diversification of Bets (Within One Wager): While seemingly counterintuitive as parlays are single wagers contingent on multiple outcomes, they do offer a form of diversification across different games or events within that single stake. Instead of putting your entire bankroll on one game, a parlay allows you to spread your predictions across several, mitigating the risk associated with the unpredictability of a single event. If one game goes awry, it only impacts that leg of the parlay, whereas in single betting, a bad beat in one game can wipe out your entire wager on that event.
Promotional Offers and Bonuses: Sportsbooks frequently offer promotions and bonuses specifically tailored to parlay bets. These can include:
- Parlay Insurance: Get your stake back as a bonus bet if only one leg of your parlay loses.
- Parlay Boosts: Enhanced odds on pre-selected parlays or for building your own parlay with a certain number of legs.
- Profit Boosts: Increased percentage on your parlay winnings.
These promotions can further enhance the value and attractiveness of parlay betting.

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Alt text: Illustration depicting the balance of risk and reward in parlay betting.

Risks of Parlay Bets: What to Be Aware Of

It’s crucial to approach parlay betting with a clear understanding of the inherent risks. While the potential rewards are enticing, the path to winning parlays is fraught with challenges:

Heightened Risk of Losing Your Stake: The most significant drawback is the increased probability of losing your entire wager. In a parlay, perfection is required. If even one leg fails to win, the entire parlay bet is lost. This all-or-nothing nature makes parlays inherently riskier than single bets, where you only need one prediction to be correct to win.
Lower Probability of Overall Success: The more legs you add to a parlay, the lower the probability of winning the entire bet. While each individual leg might have a reasonable chance of success, the combined probability of all legs winning simultaneously decreases dramatically. For example, if each leg in a three-leg parlay has a 50% chance of winning (which is often generous), the overall probability of winning the parlay is only 0.5 0.5 0.5 = 12.5%. This low win probability needs to be weighed against the higher potential payout.
Complexity in Strategy and Analysis: Crafting successful parlay bets often requires more in-depth analysis and strategic thinking than placing single bets. You need to research and evaluate multiple games or events, considering various factors that could influence each outcome. Furthermore, the interconnected nature of sporting events can introduce complexities. The result of an early game might influence team strategies or player morale in later games, adding layers of uncertainty to your parlay predictions.
Potential for Delayed Cash Flow: Parlays can tie up your betting funds for extended periods, especially if they include legs from events spread out over time. For instance, a futures parlay might combine bets on the Super Bowl winner and the World Series winner. You would have to wait from February (NFL season end) until potentially November (MLB season end) for the entire parlay to settle and your winnings to be released. This delay can impact your bankroll management and the time value of your money, as your funds are inaccessible for other betting opportunities during this period.

Cashing Out Parlay Bets Early: A Strategic Option

Many modern sportsbooks offer a “cash out” feature for parlay bets, providing bettors with a degree of flexibility and control. This feature allows you to settle your parlay bet before all legs have concluded, securing a partial win or minimizing potential losses.

How Cash Out Works:

If your parlay is progressing favorably (some legs have already won), the sportsbook might offer you a cash-out value.
This value is typically less than the full potential payout if all legs were to win, but it guarantees a profit or limits further risk.
You can choose to accept the cash-out offer and end the parlay bet early, receiving the offered amount immediately.

Strategic Advantages of Cashing Out:

Locking in Profits: If you’re feeling uncertain about the remaining legs of your parlay, cashing out can secure a profit, even if it’s less than the maximum potential payout. This is particularly useful if momentum shifts in a game or you get nervous about a potential upset.
Minimizing Losses: If one or more legs of your parlay are not going as planned, the cash-out offer might allow you to recoup a portion of your initial stake, reducing your overall loss.
Risk Management: Cashing out is a tool for managing risk. It allows you to make strategic decisions based on the current state of your parlay and your risk tolerance.

Important Considerations:

Cash-Out Value Fluctuations: The cash-out value offered by sportsbooks is dynamic and changes based on live odds and the probability of the remaining legs winning. It can decrease or increase as events unfold.
Not Always Available: The cash-out feature might not be available for all parlay bets or all legs within a parlay. Sportsbooks typically have specific rules regarding cash outs, which may vary depending on the sport, bet types, and live betting situations.
Reduced Payout: Remember that cashing out means sacrificing a portion of your potential maximum winnings for certainty.

Cashing out can be a valuable strategic option for parlay bettors, offering a way to manage risk and secure profits, but it’s essential to understand the terms and make informed decisions based on your betting strategy and risk appetite.

Parlay Bet Example: Bringing It All Together

Let’s illustrate how a parlay bet works with a practical example using NFL games and point spreads.

Suppose a bettor believes the following:

The Kansas City Chiefs (+4 points) will cover their spread against their opponent.
The New York Giants (-6 points) will cover their spread against their opponent.

Instead of placing two separate $5 bets on each team, totaling $10, the bettor decides to parlay these two selections with a $10 stake.

Possible Outcomes and Payouts (assuming standard -110 odds per leg):

Both Chiefs and Giants Cover: Win. The parlay is successful. The payout would be approximately 2.65 times the stake, resulting in a win of around $26.50 (including the return of the $10 stake, a profit of $16.50).
Chiefs Cover, Giants Do Not Cover: Loss. The parlay loses because not all legs were successful. The bettor loses their $10 stake (-$10).
Giants Cover, Chiefs Do Not Cover: Loss. The parlay loses. The bettor loses their $10 stake (-$10).
Neither Chiefs nor Giants Cover: Loss. The parlay loses. The bettor loses their $10 stake (-$10).

Expanding the Parlay (Higher Risk, Higher Reward):

Now, imagine the bettor is feeling ambitious and decides to create a five-team parlay, betting on five different NFL teams to cover their respective point spreads. If all five teams cover (and assuming -110 odds for each leg), the potential payout skyrockets. A $10 bet could potentially yield a payout around +2335 in American odds, or approximately $230.35 (including stake return).

However, remember the increased risk. If even one of those five teams fails to cover their spread, the entire five-team parlay is lost, and the bettor loses their $10 stake.

This example highlights the core principle of parlay betting: increased risk for the chance of a significantly larger payout. The more legs you add, the more challenging it becomes to win, but the potential reward grows exponentially.

Frequently Asked Questions (FAQs) About Parlay Bets

How Does a Parlay Bet Work?

A parlay bet combines two or more individual wagers into a single bet. All selections within the parlay must win for the parlay to be successful. If any leg loses, the entire parlay is lost. However, if all legs win, the bettor receives a significantly larger payout than if each bet were placed individually.

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

In most cases, if a game within a parlay is canceled, postponed, or declared a “no contest,” that particular leg is typically removed from the parlay. The parlay then recalculates with the remaining legs. For example, a four-leg parlay with one canceled game would become a three-leg parlay. The odds and payout will be adjusted accordingly. However, it’s crucial to check the specific rules of your sportsbook, as policies can vary slightly.

Why Are Parlay Bets Often Discouraged by Betting Experts?

While parlays are popular for their high payout potential, betting experts often advise caution, especially for long-term profitability. From a perspective of expected value (EV), parlays are generally less favorable than single bets. For a parlay to have a positive expected value, each individual bet within the parlay would ideally need to have a positive expected value. In reality, sportsbooks build a margin (vig or juice) into each bet, making it challenging to achieve positive EV consistently, especially when compounding multiple bets in a parlay. While parlays can be fun and offer the chance for big wins, they are statistically more challenging to win consistently and may not be the optimal strategy for maximizing long-term profits.

The Bottom Line: Are Parlay Bets Right For You?

Parlay bets offer a thrilling and potentially lucrative way to engage with sports betting. By combining multiple wagers into one, they amplify both the excitement and the potential payouts. However, it’s crucial to remember that this amplified reward comes with significantly increased risk. Parlays are inherently harder to win than single bets, as every selection must be correct.

For casual bettors seeking entertainment and the chance for a big win, parlay bets can add an exciting dimension to sports viewing. However, for those focused on serious, long-term betting strategies, a cautious approach to parlays is advisable. Understanding the risks and rewards, managing your bankroll wisely, and employing strategic selection are key to enjoying parlay betting responsibly. Whether parlays are “right” for you depends on your individual betting goals, risk tolerance, and overall approach to sports wagering.

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

What is a Parlay Bet? A Beginner’s Guide to Parlay Betting