What is a Parlay Bet?

A parlay bet combines multiple individual bets, called "legs", into one wager. To win, every leg must succeed. The appeal? Higher payouts due to multiplied odds. However, the risk is also greater - one loss means the entire bet fails.

Key points about parlay bets:

• Types of bets included: Point spreads, moneylines, totals, player props, and even bets across different sports.
• Odds calculation: Individual odds are multiplied together, increasing potential payouts but lowering the probability of winning.
• Popular formats: Same-game parlays (SGPs), round-robin parlays, and teaser parlays.
• Risks: The house edge grows with more legs, making these bets riskier than single wagers.
• When to use: Ideal for low-stake, high-reward scenarios or when using sportsbook promotions like parlay insurance.

While parlays can be entertaining and lucrative for small bets, they are not a reliable long-term strategy due to their high risk and sportsbook edge.

How Parlay Bets Work

Combining Multiple Bets

A parlay combines two or more individual bets into one wager, giving you the chance to mix and match different bet types and sports. You can include moneylines, point spreads, over/unders, or even player props - all on the same ticket. For instance, you could pair an NFL spread with an NBA moneyline and an MLB total.

The catch? Every leg of the parlay must win for you to cash out. If even one leg loses, the entire parlay is void. However, if a leg results in a push (a tie), it’s removed from the parlay, and the odds are recalculated based on the remaining legs.

How Parlay Odds Are Calculated

Sportsbooks use a specific formula to calculate parlay odds, converting individual odds into decimal format and multiplying them together. Here’s how it works:

• Convert to Decimal:
  For American odds, convert -110 to decimal by using the formula: (100/110) + 1 ≈ 1.91. For +120 odds, the formula is (120/100) + 1 ≈ 2.20.
• Multiply the Odds:
  If you’re betting on a three-leg parlay where each leg is -110, multiply the decimal odds: 1.91 × 1.91 × 1.91 ≈ 6.97.
• Calculate Your Return:
  Multiply the total odds by your stake. For example, a $50 wager on this parlay would result in 6.97 × $50 ≈ $348.50.
• Find Your Profit:
  Subtract your initial stake from the total return. In this case, $348.50 - $50 = $298.50.

This compounding effect explains why parlays can lead to higher payouts but also reduce your chances of winning as you add more legs.

Parlay Bet Example

Let’s break it down with a real-world example. Say you place a $50 wager on a three-leg NFL parlay with these picks:

• Leg 1: Bills -2.5 (-110)
• Leg 2: Browns +7.5 (-110)
• Leg 3: 49ers -3.5 (-110)

Each leg at -110 converts to about 1.91 in decimal odds. Multiply them: 1.91 × 1.91 × 1.91 ≈ 6.97, which translates to approximately +600 in American odds.

If all three teams cover their spreads, your $50 bet would return roughly $348.50, leaving you with a profit of about $298.50 on top of your original stake. But if even one team falls short, you lose the entire wager.

Here’s a look at how payouts increase as you add more legs, assuming standard -110 odds:

Number of Legs	American Odds	Profit on $100 Bet
2	+264	$264
3	+597	$597
4	+1245	$1,245
5	+2496	$2,496

Manually calculating these odds can get tricky, especially with mixed odds. That’s where a parlay calculator becomes handy - it simplifies the math and helps you confirm your potential payout before placing your bet.

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PARLAY BETS EXPLAINED: Easy Money or Dangerous Trap?

Types of Parlay Bets

Parlays come in various forms, each tailored to different betting strategies and levels of risk. Knowing the options can help you find the best fit for your approach.

Same-Game Parlays (SGPs)

A same-game parlay lets you combine multiple bets from a single event into one wager. For example, you could bet on a team's spread, the game total, a quarterback's passing yards, and a receiver's touchdown - all within the same NFL game. This type of parlay is popular because it ties together related outcomes, which can lead to higher potential payouts.

However, correlated outcomes also increase risk. Sportsbooks adjust odds for these bets, often adding a 10% to 20% house edge to account for the correlation. Despite the added risk, SGPs have gained appeal due to notable wins and their flexibility.

"The appeal of a same-game parlay lies in its flexibility and potential for higher payouts... That correlation can boost excitement but also increases risk." – Jason Logan, Senior Betting Analyst, Covers

One thing to watch for is how sportsbooks handle voided legs. For instance, DraftKings, BetMGM, and Caesars typically void the entire SGP if one leg is voided (like when a player is ruled inactive). FanDuel, on the other hand, recalculates odds for the remaining legs.

Other parlay types offer additional ways to manage risk and reward.

Round-Robin Parlays

A round-robin parlay breaks down your selections into smaller parlay combinations. For instance, if you choose four teams - A, B, C, and D - a two-way round-robin creates six two-team parlays: A+B, A+C, A+D, B+C, B+D, and C+D. This setup reduces the all-or-nothing nature of traditional parlays.

The downside? You’re placing multiple bets at once. If you wager $100 per parlay in a six-combination round-robin, you’re committing $600 total. But even if one leg loses, winnings from the others can still generate a profit.

For bettors looking to adjust odds and manage risk differently, teaser parlays offer another option.

Teaser Parlays

Teaser parlays tweak point spreads or totals - usually by 6, 6.5, or 7 points - to improve your chances of winning. For example, if the Bills are -7.5 favorites, a 6-point teaser moves the line to -1.5, making it easier for them to cover. You can combine these adjusted lines into a single teaser parlay.

While teasers improve your odds of winning, they come with reduced payouts. Most sportsbooks also limit teasers to spreads and totals, excluding moneyline bets. This trade-off makes teasers a calculated way to increase win probability while accepting smaller returns.

Risk vs. Reward in Parlay Betting

Parlay bets can turn modest wagers into hefty payouts, but the trade-off is a sharp increase in risk with every additional leg.

High Risk, High Reward

The nature of a parlay is unforgiving - every leg must win for the bet to cash. If even one leg loses, the entire wager is a bust. This all-or-nothing structure makes parlays far riskier than single bets, where you can still profit on partial wins.

The odds of success drop significantly with each leg you add. For instance, even if you're a bettor with a solid 55% win rate on single bets, the likelihood of winning a two-leg parlay shrinks to about 30%. Add more legs, and the probability plummets further.

Worse, the payout gap between the true odds and what sportsbooks actually pay grows with every leg. A 10-leg parlay, for example, has true odds of +102,300, but sportsbooks typically offer only +64,208. That massive difference? Pure profit for the sportsbook.

This imbalance highlights why parlays are such a lucrative option for sportsbooks, as the house edge increases exponentially.

The House Edge in Parlays

Parlays amplify the house edge significantly. While a single -110 bet gives the sportsbook about a 4.6% edge, the edge balloons as you add more legs. A four-leg parlay can carry an edge of 18.75%, and a six-leg parlay can push that to 25%.

Number of Legs	True Odds	Sportsbook Payout	House Edge
1	+100	-110	4.6%
2	+300	+264	9.0%
3	+700	+600	12.5%
4	+1,500	+1,200	18.75%
6	+6,500	+4,700	25.0%

Same-game parlays come with even higher costs. Sportsbooks often tack on an extra 10% to 20% edge due to the correlated outcomes within these bets. This is why many experts advise against building overly ambitious parlays.

"Once you start playing parlays with three teams or more, you don't get true odds. You're losing value each time you add a team." – Micah Roberts, Sportsbook Director, SportsLine

When to Use Parlays

Despite the risks, parlays can still have their place - primarily as a form of entertainment rather than a serious betting strategy. Here are some scenarios where parlays might make sense:

• Small stakes: Placing a $5 or $10 parlay can add excitement to multiple games without putting too much of your bankroll at risk. Think of it as paying for entertainment, not as a sound investment.
• Bonus bets: Since sportsbooks don’t return your original stake on winning bonus bets, using them on parlays with odds between +250 and +450 can help maximize the promotional value.
• Promotions and insurance: Some sportsbooks offer parlay insurance (refunds if only one leg loses) or profit boosts. These can slightly cushion the built-in house edge.

Experts generally recommend keeping parlays simple - stick to two or three legs to avoid compounding the house edge to extreme levels. Additionally, careful bankroll management is key. Allocate only 1% to 3% of your total funds to parlays, reserving the majority for single bets, which offer better long-term returns.

Tools and Tips for Parlay Bettors

Parlay betting involves a mix of strategy, discipline, and the right tools. Whether you're calculating payouts or managing your bankroll, these tips and resources can help you make smarter decisions.

Using a Parlay Calculator

A parlay calculator is an essential tool for bettors. It simplifies the process of calculating payouts by converting American odds to decimals, multiplying them, and factoring in your stake to show both your return and profit .

If one leg of your parlay ends in a push, the calculator adjusts the odds automatically . But these tools can do more than just crunch numbers - they also reveal the implied probability of your bet. For instance, odds of +1038 indicate an 8.787% chance of winning. By comparing this probability to your own analysis, you can identify bets where the sportsbook might have undervalued an outcome, offering you a potential edge.

Additionally, calculators highlight the house edge, showing the difference between the actual odds and what the sportsbook pays out. This insight can help you gauge the true value of your bets.

Bankroll Management for Parlays

Parlays come with higher risks, so managing your money wisely is crucial. Start by creating a dedicated bankroll - a pool of money set aside exclusively for betting and separate from your daily living expenses. From that bankroll, limit your bets to 1–3% of the total per parlay. This approach helps absorb losses during inevitable cold streaks .

To reduce risk, keep your parlays simple. Stick to 2–4 legs, as longer parlays significantly increase the house edge . Since parlays are inherently risky, they should only make up a small portion of your overall betting strategy. The majority of your bankroll should focus on straight bets, which offer better long-term returns .

Learning Resources for Parlay Betting

To refine your parlay betting strategy, take advantage of educational tools and resources. Platforms like LearnSportsBetting offer a variety of features to help you improve. Their parlay calculator is perfect for estimating payouts and evaluating risks before placing a bet. Meanwhile, their online learning modules break down complex topics like round robins, teasers, and same-game parlays into easy-to-understand lessons.

Additional resources include one-on-one expert chat support for personalized advice, real-time odds updates to compare lines across sportsbooks, and public betting trends to see where the majority of bettors are placing their money. These tools are designed to help you make more informed choices and avoid common mistakes in parlay betting.

Conclusion

Let's sum up the key points about parlay betting and share some final advice for making more informed wagers.

Parlay Betting Basics Recap

A parlay combines multiple bets into one. To win, every leg of the parlay must hit - no exceptions. The appeal lies in the multiplied odds, which can lead to much bigger payouts than placing individual bets. However, the risk is equally high since even one loss means the entire bet fails.

For instance, a two-team parlay at standard -110 odds has about a 27.47% chance of winning. But stretch that to a ten-team parlay, and the probability plummets to roughly 0.15%. On top of that, the house edge grows with each added leg, climbing from around 9% for a two-leg parlay to about 25% for a six-leg parlay.

"Once you start playing parlays with three teams or more, you don't get true odds. You're losing value each time you add a team." – Micah Roberts, SportsLine Expert

Understanding these fundamentals is crucial for making smarter betting decisions.

Final Tips for Bettors

To manage the risks of parlay betting, keep these tips in mind:

• Treat parlays as a form of high-risk entertainment rather than a reliable betting strategy.
• Stick to smaller parlays, such as two- or three-leg combinations, and only wager a small portion of your bankroll on them.
• Use a parlay calculator to double-check payouts and compare odds across sportsbooks. Even minor differences in odds can have a noticeable impact on your potential winnings.

While parlays can be thrilling and occasionally rewarding, focusing on straight bets typically offers better value over time. The key to smarter betting lies in discipline and a clear understanding of the risks involved.

FAQs

What happens to my parlay bet if one leg pushes?

A push in a parlay bet happens when one of the individual bets (or legs) ties, such as hitting the exact point spread or total. When this occurs, that specific leg is voided, and the parlay is recalculated based on the remaining legs.

For instance, if you placed a three-leg parlay and one leg results in a push, your bet essentially turns into a two-leg parlay. The payout is then adjusted to reflect the reduced number of legs.

The good news? A push doesn’t mean you lose the entire parlay. While your potential payout will decrease because fewer legs are factored in, you still have a shot at winning based on the remaining bets.

What are the benefits of using a parlay calculator?

A parlay calculator is a handy tool for bettors looking to streamline their betting process. Instead of manually crunching numbers, the calculator does the work for you by combining the odds of each selection in your parlay. This gives you a quick and accurate estimate of your potential payout if all your picks hit. It's a time-saver and helps eliminate mistakes that can happen with manual calculations.

Another big advantage is the ability to weigh risk versus reward. A parlay calculator lets you see how adding or removing a leg affects both your potential winnings and the likelihood of success. You can tweak odds, adjust the number of picks, and explore different setups to find the balance that works for you. With its ability to provide precise calculations and support smarter decisions, this tool is a must-have for anyone serious about parlay betting.

When should you use parlay insurance?

Parlay insurance offers a safety net for bettors who want to reduce the risk of losing their entire wager on a parlay bet. If one leg of your parlay doesn’t hit, this feature refunds part of your stake, giving you a bit of breathing room while still keeping the chance for a big payout alive.

This can be especially useful if you feel confident about most of your picks but want some protection in case one doesn’t pan out. It’s a way to strike a balance between risk and reward, helping you secure at least a partial return while still chasing those larger potential winnings.