Parlay Betting

Throughout this guide to parlay betting, we’ll explain how this bet type works, strategies for crafting parlays, and mistakes to avoid along the way. Let’s get into it!

What is a Parlay Bet?

A parlay bet combines multiple outcomes into a single wager, with multiplied odds for each outcome (or “leg”) added to the bet slip.

The high-risk, high-reward nature of parlays has led to massive popularity among U.S. sportsbooks, with many offering daily pre-crafted parlays that bettors can add to their slips upon opening their favorite betting app or web-based gambling platform.

How Parlay Bets Work

Parlay bets work by combining at least two betting outcomes into one wager, with the odds multiplied for each leg added to the parlay. The challenge to parlay betting is that each leg must be picked correctly for the wager to be scored a win; a single leg failing to hit results in the entire bet to lose.

Let’s take a look at a simple three-leg parlay from the 2024 MLB season:

For this example, let’s say you’re picking the Reds, Blue Jays, and Orioles to win. A $10 wager on each of those teams would result in a profit of $23.58 ($8.20 from Cincinnati, $9.43 from Toronto, and $5.95 from Baltimore).

However, by putting those three teams together into a parlay, a $10 wager would yield a profit of $46.42; nearly double the original profile with only a third of the money you originally risked as your stake. If you went the full $30 stake you used for the series (three $10 bets), your new profit would be $139.26, well over $100 past your original return.

Unfortunately, if one of those teams was to lose (say, Toronto, who is on the road while the others are at home), your entire bet is a loser as well.

Occasionally, one of your parlay legs may settle as a “push.” When this happens, that leg of the parlay is omitted, with the multiplier scaling down by a factor of 1 (so a 5-leg parlay with a push would pay out with a 4-leg multiplier, a 4-leg would pay out as a 3-leg, etc.).

In some cases, parlay insurance may be available, allowing you to recoup some or all of your original stake if you miss by only one leg. Be sure to check the rules carefully to be sure your bet is eligible and opt-in if necessary.

Types of Parlay Bets

Sportsbooks will give users virtually free rein to craft their parlays, though there are a few types of parlay bets to choose from.

• Multi-event parlays: Multi-event parlays are wagers that include legs from at least two sporting events. These can include moneyline wagers, spread bets, totals, or props from within those markets. The parlay we discussed above is an example of a multi-event parlay.
• Same game parlays: Unlike multi-event parlays, same game parlays use markets from within a single contest. Often shortened to “SGPs,” same game parlays allow users to concentrate their research efforts rather than needing to worry about studying multiple games before making their picks.
• Progressive parlays: Progressive parlays are a type of wager that allows for a certain margin of error within your selections while still receiving a payout. The more legs you add, the more you’re allowed to miss and still make a profit; however, progressive parlays have lower maximum returns than traditional parlays because of this increased likelihood of a payout. Most operators will allow between 3-12 legs for a progressive parlay, but there may be some variance in those numbers. You will also be limited in the number of legs you can choose from each game (oftentimes it’s no more than three entries from the same game).
• Teasers: Teaser bets are a form of parlay wagering where you’re exclusively betting on point spreads. The lines are adjusted (or “teased”) to, in a sense, “buy” points on the line. The payouts are not as high because of the adjusted lines, but the bets are theoretically easier to win.

Calculating Parlay Odds and Payouts

Calculating parlay odds and payouts can be done right here on BettorInGreen.com. Our parlay calculator will help you determine the potential return before you lock in your bets, allowing you to decide if the parlay is with your time and money.

If you want to calculate by hand, you’re welcome to do so as well by following these steps:

1. Convert the odds from American (such as -110, +150, -175, etc.) to their decimal equivalents (1.91, 2.5, 1.57, etc.)
2. Multiply the decimal odds together (1.91 x 2.5 x 1.57 = 7.50)
3. Multiply your total from Step 2 by the value of your stake ($10 x 7.50 = 75.00)
4. Subtract your original stake amount from your total in Step 3 (75.00 – 10 = 65.00)

This three-leg parlay would pay out $65 for every $10 wagered if it hit. On your bet slip, it would likely show the American odds of +650.

Fortunately, your betting platform will display these odds as you craft your parlay, but it’s still a useful skill to know.

Strategies for Betting Parlays

Every bettor will use different strategies for betting parlays, but there are a few we encourage new parlay bettors to consider:

• Start small and keep it simple: Using smaller wagering amounts when betting your parlays can still lead to larger profits. Additionally, keeping your parlays between 2-5 legs is highly recommended. This is because of the difficult nature of making so many correct predictions and the longer length of time needed to break even when placing larger parlays.
• Take advantage of promotions when you can: Betting bonuses are abundant nowadays, and many times, you’ll be able to use bonus bets or other betting credits to craft a parlay. This is a great way to push for a profit without utilizing funds from your bankroll. In rare cases, you may also be able to include odds boosts in your parlay, further multiplying your potential payout!
• Balance favorites and underdogs: Betting favorites are so named because they are projected as more likely to win. By including more favorites than underdogs on your betting slip, you increase your likelihood of winning while also creating a higher profit potential than you would betting those favorites on the moneyline (better betting value). However, in most sports, the moneyline favorite only wins about 66% of the time. Manage your risk accordingly!
• Consider Round Robin parlays: Round Robin betting allows you to create multiple parlay combinations from a larger pool of picks. If one leg of your parlay fails, a Round Robin can still result in a profit as it creates several smaller parlays from your selections. This method spreads your risk and increases your chances of securing a win, even if you miss a prediction or two. While the total payout may be smaller than a full parlay win, the increased chance of success makes Round Robin a strategic alternative for bettors who prefer a more balanced approach.

Common Mistakes to Avoid in Parlay Betting

Before taking a crack at parlay betting, be sure to avoid these common mistakes:

• Adding too many legs: We’ve all dreamed about hitting a massive 10-leg parlay and raking in thousands of dollars or more at the risk of a small wager, but the statistical unlikelihood of hitting parlays with six or more legs means you’re better off going with several smaller parlays instead.
• Blind betting: The best bet you can make is a well-informed wager. Don’t get caught up in the hype around a betting market or line without doing your research to see if the wager is worth including.
• Poor bankroll management: You should always be betting within your means, and with parlay wagers in particular, there’s no need to throw massive amounts of money on lengthy and risky bets. All gambling carries a risk that you won’t make a profit, so don’t wager more than you can afford to lose!
• Failing to shop the odds: While most sportsbooks will keep their lines close to one another, there’s no guarantee that they will all use the same odds for the markets you’re planning to bet. Don’t be afraid to check the odds at multiple sportsbooks before playing your parlays, as the multiplicative nature of parlay betting means even subtle differences in odds can lead to sizable changes to your profit line!

Conclusion

Now that you’ve learned a bit more about how parlays work and the strategies to use when playing them, you’re ready to head to the sportsbooks! Remember to start small, keep your parlays simple, and adjust your strategies depending on the results you’re seeing.

Discipline is an important component of parlay betting. Smart bankroll management and risk assessment are key skills to have, and parlays will give you plenty of opportunities to practice both.

If you’ve determined after reading this that parlays aren’t for you, no worries! Feel free to browse our other sports betting guides to see if another type of gambling is a better match for how you want to play.

Good luck, have fun, and always gamble responsibly!

FAQ

Can you cash out a parlay bet before all legs are complete?

Yes, there are times when you can cash out a parlay bet before all legs are complete. Early cash-out rules vary depending on which sportsbooks you’re using, so be sure to check the house rules to verify your parlay is eligible!

Which sportsbook is best for parlay betting?

A progressive parlay is a type of wager that allows you to have a margin of error within your parlay while still having the ability to make a profit. The more legs you’ve added, the more you’re allowed to miss while still collecting a payout. However, the maximum payouts are reduced to offset the increased payout likelihood.

How do sportsbooks set the odds for parlays?

Sportsbooks set the odds for parlays by multiplying the odds of each leg you’re adding to the wager and factoring in the value of your stake. When more legs are added, the multiplier increases.

What are the risks of placing large parlays?

There are many risks associated with placing large parlays, the most significant of which is the increased likelihood of losing. As more legs are added to your parlay, you create more scenarios where your bet could lose. Proper risk management and bankroll planning are keys to more frequent parlay success.

Can you place a parlay bet live during a game?

Yes, many sportsbooks will allow you to place a parlay bet live during a game. However, the odds may have changed from what they were before the game started and might not be as favorable as they were earlier. If you’re planning to include a live bet in your parlay, make sure it’s from a game you’re actively watching!