Parlay bets represent one of the most exciting yet challenging forms of sports wagering. They offer the tantalizing prospect of turning small stakes into massive payouts, but they also come with significantly increased risk. Understanding how parlays work is essential for any bettor looking to expand their betting repertoire.
What Exactly Is a Parlay Bet?
A parlay bet combines multiple individual wagers into a single bet slip. To win a parlay, every single selection must be correct – there’s no partial credit for getting most picks right. This all-or-nothing nature is what makes parlays both thrilling and risky.
You can combine different types of bets within a parlay, including point spreads, moneylines, and over/under totals. Some sportsbooks even allow you to mix bets from different sports, creating cross-sport parlays that span multiple games or events.
The minimum number of selections for a parlay is typically two, though some sportsbooks require three. There’s usually a maximum limit, often around 10-15 selections, though this varies by operator.
How Parlay Payouts Are Calculated
Parlay payouts multiply the odds of each individual bet together, creating exponentially larger potential returns. For standard -110 bets, a two-team parlay typically pays around 2.6-to-1, while a three-team parlay pays approximately 6-to-1.
Here’s how it works mathematically: if you have three bets at -110 odds, each has an implied probability of about 52.4%. The probability of all three hitting is 52.4% × 52.4% × 52.4% = 14.4%, which corresponds to odds of roughly 6-to-1.
However, sportsbooks don’t pay true mathematical odds. They build in a house edge, so actual payouts are slightly lower than the calculated probability would suggest. This difference represents part of the sportsbook’s profit margin.
Different Types of Parlay Bets
Standard parlays are the most common type, combining multiple straight bets. Round robin parlays create multiple smaller parlays from a larger group of selections, providing some insurance against losing everything on one wrong pick.
Teaser bets are a special type of parlay that allows you to adjust point spreads in your favor, typically by 6, 6.5, or 7 points in football. The trade-off is reduced payouts compared to standard parlays.
Same-game parlays have become increasingly popular, allowing bettors to combine multiple bets from a single contest. For example, you might bet on a team to win, the total to go over, and a specific player to score a touchdown.
The Appeal and the Reality
The primary attraction of parlay betting is the potential for massive payouts from small investments. A $10 five-team parlay at standard odds could return over $250, making it appealing to recreational bettors seeking big scores.
However, the mathematics work heavily against parlay bettors. Even if you’re skilled enough to win 55% of your individual bets – which would be profitable for straight betting – your success rate on three-team parlays would be only about 17%.
Professional bettors generally avoid parlays because they’re mathematically disadvantageous. The compound effect of multiple bets means even small edges for the house multiply quickly.
Smart Parlay Strategies
If you choose to bet parlays, consider limiting yourself to two or three selections maximum. The difficulty increases exponentially with each additional selection, and the house edge grows accordingly.
Look for correlated outcomes when building same-game parlays. For instance, if you expect a high-scoring game, combining the over with both teams’ over on their individual totals might make sense.
Set strict bankroll limits for parlay betting. Since these bets lose more often than they win, never risk money you can’t afford to lose entirely.
Final Thoughts
Parlay bets can add excitement to your sports betting experience, but they should be approached as entertainment rather than a serious profit strategy. Understanding their mechanics and limitations helps you make informed decisions about when and how to use them in your overall betting approach.
