A parlay is a type of sports bet that combines two or more individual bets into one single wager. For the bet to win, all the individual bets within the parlay, often called “legs” or “selections,” must be correct. While this makes parlays riskier than betting on individual outcomes, the potential payout is significantly higher. Let’s dive deeper into the mechanics, strategy, and appeal of parlays.
A parlay allows you to bet on multiple events across various games or even different sports in one ticket. Each event (or leg) can have its own set of odds, but the overall parlay odds are calculated by multiplying the odds of each selection together. This creates a much higher cumulative payout if all the legs win.
Example of a 3-leg parlay:
Team A to win (odds: 2.0)
Team B to cover the spread (odds: 1.8)
Over 220 points in a basketball game (odds: 1.9)
The combined parlay odds would be calculated by multiplying the odds of each leg:
2.0 × 1.8 × 1.9 = 6.84
This means that a $100 bet would result in a payout of $684 if all three outcomes were correct. However, if just one leg loses, the entire parlay is lost.
2. Key Features of Parlays:
Higher Payouts: Because the risk is higher, sportsbooks offer significantly larger payouts for successful parlays compared to individual bets. The more legs added, the greater the potential return.
Increased Risk: While the payout increases with each added leg, the risk also multiplies. Each additional selection introduces more uncertainty, making parlays harder to win, especially when many legs are included.
Sports Variety: A parlay can combine multiple types of bets like moneyline, spread, or totals from different sports. Some sportsbooks even allow cross-sport parlays, combining, for example, NFL with NBA or other sports.
Correlated Bets Restrictions: Many sportsbooks disallow parlays where the legs are closely related (correlated bets). For example, betting on a team to win and also betting on the total points over/under in the same game may be restricted if one outcome strongly influences the other.
3. Types of Parlay Bets:
Moneyline Parlays: A bettor selects multiple teams or players to win straight-up without considering the point spread. This is the simplest form of a parlay, but since no spreads are involved, it often yields smaller odds compared to other types of parlays.
Point Spread Parlays: In this case, a bettor wagers on teams to cover the spread rather than just winning the game. These bets tend to be riskier but can result in higher payouts.
Totals Parlays: This involves betting on the total score of games (over/under). You can bet on multiple games or events, predicting whether the total points scored will go over or under a set number.
Same Game Parlays: Some sportsbooks allow bettors to combine multiple outcomes from a single game (e.g., picking a player to score, predicting the final score, and betting on a particular team’s win margin). These are more correlated and thus riskier but can lead to very high returns.
4. Payout Structure and Calculation:
As mentioned, the overall parlay odds are calculated by multiplying the odds of each selection. Most sportsbooks offer fixed odds parlays for a certain number of teams, while others might use dynamic calculations based on current market odds.
For example:
2-team parlay: 2.6x payout (depending on the odds)
3-team parlay: 6.0x payout
4-team parlay: 12.3x payout
5-team parlay: 24.4x payout
This exponential increase is attractive to bettors, but it’s important to understand that the compounded risk is significant. The probability of winning decreases dramatically as the number of legs increases.
5. Parlay Insurance:
To mitigate the risk, some sportsbooks offer parlay insurance. This is a promotion where if one leg of a parlay loses, the bettor can receive a refund of their stake (or a portion of it) as a free bet. This softens the blow when one selection narrowly misses, which happens frequently in parlays.
6. Parlay Strategy and Approach:
Select Low-Risk Bets: Some bettors prefer to include a few “sure things” in their parlays, such as heavy favorites with lower odds. However, this reduces the potential payout, so it’s a trade-off between increasing chances of winning and maximizing the payout.
Limit the Number of Selections: The more legs added to a parlay, the lower the likelihood of success. Some experts suggest capping parlays at 2-4 legs to balance risk and reward effectively.
Bankroll Management: Since parlays carry a much higher level of risk, it’s essential to manage your bankroll wisely. It is recommended to stake smaller amounts on parlays than you would on single bets.
Same-Sport Parlays: Stick to one sport for parlays to reduce variables. For example, it’s often easier to predict multiple outcomes in the same football game or league than it is across different sports where the factors influencing outcomes differ.
Avoiding Emotional Betting: Parlays can entice bettors to add more legs out of excitement or ambition for a larger payout. However, disciplined betting and sticking to strategy is key for long-term success.
7. Pros and Cons of Parlays:
Pros:
High Reward Potential: Parlays offer large payouts for relatively small stakes.
Increased Entertainment: The thrill of watching multiple games with high stakes can add to the entertainment value for bettors.
Flexibility: Parlays allow a mix of different sports, bet types, and markets into one ticket.
Cons:
High Risk: The likelihood of losing is much greater due to the compounded nature of multiple bets.
Reduced Control: Unlike single bets where you have control over one outcome, parlays rely on multiple correct predictions, reducing the bettor’s control.
Lack of Cash-Out Options: Some sportsbooks do not allow cashing out parlays early, meaning you have to ride out all the legs.
Conclusion:
Parlays are a high-risk, high-reward betting option. While they can offer massive payouts compared to individual wagers, the risk of losing is much greater due to the reliance on multiple outcomes. Experienced bettors may incorporate parlays sparingly, while novices should be cautious not to chase large payouts without considering the compounded risk. Successful parlay betting requires careful strategy, solid research, and disciplined bankroll management.
