A parlay is a single wager that combines two or more individual bets into one ticket. To win a parlay, every single bet (called a "leg") must win. If even one leg loses, the entire parlay loses. It's an all-or-nothing proposition that offers the potential for much higher payouts than individual bets.
Think of a parlay like a chain — it's only as strong as its weakest link. You might nail four out of five picks perfectly, but if that fifth pick loses, your entire bet is worthless. This fundamental characteristic makes parlays both exciting and dangerous.
The mechanics of a parlay are straightforward: you select multiple bets, and the odds of each bet are multiplied together to determine your potential payout. The more legs you add, the higher the potential payout — but also the lower your chances of winning.
When you combine bets in a parlay, you're essentially multiplying the decimal odds of each leg. Here's the formula:
For example, if you bet $100 on a three-leg parlay with odds of +150, +200, and +120:
The payout structure of parlays is what makes them so appealing to recreational bettors. Small stakes can lead to massive returns — at least in theory. Here's how payouts typically scale:
| Number of Legs | Typical Payout (Even Money Bets) | True Odds | House Edge |
|---|---|---|---|
| 2-leg | 3-to-1 (2.6-to-1) | 3-to-1 | ~4.5% |
| 3-leg | 6-to-1 (6-to-1) | 7-to-1 | ~12.5% |
| 4-leg | 10-to-1 (12-to-1) | 15-to-1 | ~31% |
| 5-leg | 20-to-1 (25-to-1) | 31-to-1 | ~38% |
| 10-leg | 600-to-1 (700-to-1) | 1023-to-1 | ~41% |
These combine point spreads, moneylines, and totals from different games. Each leg must win for the parlay to cash. Most recreational bettors stick to 2-6 legs in standard parlays.
A newer innovation that allows you to combine multiple bets within a single game. For example: Patriots to cover the spread AND Tom Brady to throw for over 300 yards AND the total to go over 45.5 points.
A type of parlay that allows you to adjust the point spread or total in your favor for each game, but at reduced odds. Common teaser options are 6, 6.5, or 7-point adjustments.
These create multiple smaller parlays from a larger group of selections. If you pick 4 teams, a round robin might create 6 different 2-team parlays, giving you multiple chances to win something even if not all picks hit.
These offer partial payouts even if some legs lose, but the full payout requires all legs to win. They're essentially a compromise between parlays and round robins.
Legs:
$50 bet returns $459.52 if all three hit
Lakers vs Celtics:
$25 bet returns $194.28 if all legs win
Eight moneyline favorites at around -150 each. Stake: $10. Potential payout: $1,247. Probability: About 3.9%.
If you're going to bet parlays, 2-leg parlays offer the best balance of increased payout and manageable risk. The house edge is relatively low, and you only need two things to go right instead of three, four, or more.
Look for situations where your bets support each other. For example, if you think a game will be high-scoring, betting the over AND the underdog can make sense — high-scoring games often stay close.
Since parlay payouts multiply, even small differences in odds can significantly impact your potential return. A -105 line instead of -110 might not seem like much, but across multiple legs, it adds up.
If you're one leg away from hitting a big parlay, consider hedging by betting the opposite side of your final leg. You might guarantee a profit regardless of the outcome.
Parlays tap into a fundamental human psychology — the lottery ticket mentality. For a small investment, you could win life-changing money. Stories of $10 bets turning into $100,000 wins spread like wildfire on social media.
Here's what the math tells us about parlays:
Parlays can devastate a bankroll quickly. The all-or-nothing nature means you'll experience longer losing streaks than with straight bets, even if your individual picks are good.
Master the fundamentals with our comprehensive guides on strategy, bankroll management, and advanced concepts.
Explore All Betting GuidesBettors often add heavy favorites to their parlays thinking they're "free money." But even -500 favorites lose about 17% of the time, and those losses will kill many otherwise good parlays.
After losing a few 3-leg parlays, some bettors think the solution is to bet 6-leg parlays for bigger payouts. This is like digging a deeper hole to get out of a shallow one.
Taking the first odds you see instead of shopping around. Remember, in parlays, every fraction of a point in odds matters more than in straight bets.
Combining bets that have nothing to do with each other, like an NFL game, NBA game, and MLB game. You're just multiplying independent risks without any strategic advantage.
If you have a big position on one side, you can use a small parlay that includes the other side as a form of insurance. If your main bet loses, you might still cash the parlay.
In same-game parlays, sometimes you can find opportunities to bet both sides of a key number. For example, if you can get Team A +3 and Team A -3.5 in different parlays, you win both if Team A loses by exactly 3.
Use live betting to your advantage by building parlays as games unfold. You might get better odds on certain outcomes once you see how a game is developing.
Different sports and times of year offer different parlay opportunities. NFL playoff games often have tighter lines, making underdogs more attractive in parlays. MLB season-long trends can help identify value in long-shot parlays.
Parlays represent the high-risk, high-reward side of sports betting. They can turn a mundane Sunday into an edge-of-your-seat thriller, but they can also quickly drain your bankroll if not approached with caution and discipline. The key is understanding exactly what you're getting into — both the mathematical realities and the psychological appeal.
Remember: the sportsbook isn't offering these huge payouts out of generosity. They're profitable for the house precisely because they're difficult for bettors to win consistently. Approach them as entertainment rather than investment, and you'll enjoy them much more while protecting your bankroll.