What is a Parlay?

A parlay is a single wager that links together two or more individual bets, called legs, into one combined bet. For the parlay to win and pay out, every leg must be correct. If even one leg loses, the entire parlay loses, no matter how many other bets won. This “all-or-nothing” nature is what makes parlays both thrilling and risky.

Why Parlays Pay More (and Why They’re Riskier)

Parlays are popular because they offer bigger payouts than betting on individual games. But why? The reason is simple: more risk.

When you place a single bet, your payout depends on just one outcome. In a parlay, you’re betting that multiple outcomes all happen together. Every time you add another bet, or leg, it becomes harder to win. But because of that added difficulty, sportsbooks increase the payout by multiplying the odds in a way that gives you more return for your risk.

Parlay Example vs. Individual Bets

Let’s say you like two teams and want to bet on both:

• New York Liberty at -110

• Kansas City Chiefs at -120

If you bet each one separately and both win:

• You bet $100 on the Liberty at -110:You win $90.91 profit and get back $190.91 total (profit + stake).

• You bet $100 on the Chiefs at -120:You win $83.33 profit and get back $183.33 total.

• Total Profit if both win:$90.91 + $83.33 = $174.24 profitBut you had to risk $200 total ($100 on each game).

Now let’s look at a 2-leg parlay with the same teams:

• You bet $100 total (on both games together).

• Both teams must win for you to win the bet.

• If both win, your payout is around $264.49 profit, and you get back $364.49 total (profit + stake).

Clear Comparison:

• Individual Bets:

  • Profit: $174.24

  • Risked: $200

• Parlay Bet:

  • Profit: $264.49

  • Risked: $100

Why Parlays Pay More:

In the parlay, you’re risking less money, but since both teams must win, your payout is higher. The added difficulty is why sportsbooks offer bigger rewards for parlays. The chance of hitting both bets is lower, but if you do, you’re rewarded for taking on that extra risk.

Key Takeaway:

In separate bets: you could win one and lose the other and still get some money back.

In a parlay: lose either bet, and you lose everything.

That’s why sportsbooks offer higher payouts for parlays: they’re harder to win. You're not just making two picks—you’re linking them together, and that makes the bet far more difficult to cash. The more legs you add, the more that has to go right, and the longer the odds grow. The higher payout is a direct reward for the greater risk.

The Math Behind Parlays: Why It Matters

Understanding the math behind parlays helps bettors grasp both the opportunity and the risk involved.

1. Odds Multiply, Not Add:

   
   

   When you place individual bets, you win based on the odds for that game alone. In a parlay, those odds are multiplied together, which can turn even modest odds into a large combined number.

2. Exponential Growth in Payout:

   
   

   Each leg adds to the payout, but also makes the bet harder to win. For example, if you bet on three -110 favorites:

   • Individually, each bet would win you $90.91 on a $100 wager.

   • In a parlay, the total payout could be over $600 for the same $100—but only if all three win.

3. Probability Drops Quickly:

   
   

   If each individual leg has a 55% chance of winning:

   • A 2-leg parlay has a 30.25% chance of winning (0.55 x 0.55).

   • A 3-leg parlay has just a 16.6% chance (0.55 x 0.55 x 0.55).

   • The more legs, the lower the probability.

     
     

4. Why It Matters:

   • This math shows why parlays are enticing but dangerous. Bettors see the high payout and underestimate the risk.

   • Knowing the numbers can help you decide whether to go for the big win or play it safer with straight bets.

   • It also explains why sportsbooks promote parlays—they’re hard to win consistently, which is good for the house.

Why Sportsbooks Love Parlays (and Why You Should Know It)

Here’s something every bettor should understand: sportsbooks love parlays, and not just because they’re exciting for bettors. Parlays are one of the biggest profit drivers for sportsbooks, and once you understand the reasons why, you’ll see them in a whole new light.

Let’s start with this: parlays are hard to win. For you, that means a thrilling bet with a big potential payout. For the sportsbook, it means a steady stream of wagers with a high likelihood of staying in their favor. While it might feel like you’re getting closer to a big win with each leg you add, the reality is that each additional leg dramatically increases the sportsbook's edge.

Most bettors don’t think about the math. They see the big payout and imagine what they’ll do with the winnings. But sportsbooks know the numbers inside and out. They know that even if one leg of your four-team parlay seems like a “sure thing,” the chances of all four hitting are slim. And here’s the kicker: even though the payout on parlays is higher, the expected value for the bettor is much lower than on individual bets.

Now consider this: while parlays only make up about 20% of total bets placed, they account for roughly 30-40% of sportsbook profits from betting. That’s right—a small portion of the bets bring in a disproportionately large share of the profit. Why? Because the high-risk nature of parlays leads to more losing tickets. And losing tickets? They’re good for the house.

Sportsbooks also promote parlays heavily. You’ll see same-game parlays front and center on apps, often with boosted odds or special parlay promotions. They’re not just doing this for fun. They know these bets bring in action and that most of the time, they’re walking away with the money.

This doesn’t mean you shouldn’t bet parlays. But it does mean you should bet them wisely. Know that sportsbooks are happy when you load up your slip with eight legs. That’s not a bad thing in itself, but it’s a reminder to treat parlays for what they are: a high-stakes, high-thrill play, not a consistent strategy for long-term profit.

Types of Parlays

Not all parlays are created equal. Depending on your goals and risk tolerance, you can choose from several parlay types. Each offers its own twist on the multi-leg betting concept.

Standard Parlay

This is the classic, no-frills parlay. You select two or more bets (legs), and all must win for the parlay to pay out. If even one leg loses, the entire bet is a loss.

• Example:

  You place a 3-leg standard parlay:

  • Kansas City Chiefs -3.5

  • New York Liberty -5.5

  • LSU Tigers moneyline

If all three bets win, your payout is calculated by multiplying the odds of each leg. One loss? No payout.

• Best For: Bettors chasing high payouts with a small stake.

Same-Game Parlay (SGP)

An SGP lets you combine multiple bets from a single game. This is great for fans who know the details of a specific matchup. Some sportsbooks offer boosted odds or special promos for SGPs.

• Example: In a Dallas Cowboys game, you create an SGP:

  • Cowboys moneyline (to win)

  • CeeDee Lamb to score a touchdown

  • Total points over 45.5

If all these events happen within that game, your parlay wins.

• Best For: Fans with deep knowledge of one team or game.

Teasers

Teasers are parlays that allow you to adjust the point spreads or totals in your favor. This makes each leg easier to win but reduces your potential payout. Teasers are popular in NFL and NBA betting.

• Example: A 3-leg, 6-point NFL teaser:

  • Eagles -6.5 teased to -0.5

  • Bills -5.5 teased to +0.5

  • Ravens -7.5 teased to -1.5

Each point spread shifts by 6 points in your favor. All three adjusted spreads must win for the teaser to cash.

• Best For: Bettors who want a little more cushion on close games.

Round Robin Parlays

Round robin parlays break down your bets into multiple smaller parlays, giving you more chances to win even if one or more bets lose. Instead of placing one large parlay, you're covering several combinations.

• Example: You pick 3 teams:

  • Seattle Storm

  • Miami Dolphins

  • Alabama Crimson Tide

A 2-leg round robin creates 3 parlays:

• Storm + Dolphins

• Storm + Alabama

• Dolphins + Alabama

If one team loses, you can still win one or two of the smaller parlays.

• Best For: Bettors who want parlay excitement with reduced risk.

Why You’ll Like Parlays

• Big Payouts: Win more with less.

• Excitement: Every leg raises the stakes.

• Flexible Formats: Pick your parlay style.

• Bet Small, Dream Big: Modest wagers, massive upside.

Madison’s 4-Leg Parlay: The Saturday Slam

Madison, a die-hard basketball fan, places a 4-leg parlay:

1. UConn Women’s Basketball -8.5 vs. Baylor

2. Milwaukee Bucks moneyline vs. Knicks

3. Tennessee Volunteers -2.5 vs. Gators

4. Vikings vs. Packers Over 48.5 total points

   
   

Her $25 bet could turn into $317.40. She watches each game unfold, heart pounding. The Bucks win, UConn dominates, and Tennessee covers. Now, it all rides on that final NFL over. The last touchdown pushes the total to 51 points. Madison wins. And the thrill? Unmatched.

Why You May Not Like Parlays

• Hard to Hit: One wrong pick spoils it.

• Not a Pro Strategy: Long-term profits are rare.

• Risk Rises Quickly: More legs = more risk.

• Tempting but Tricky: Big payouts can cloud judgment.

Advanced Parlay Strategies

Leveraging Correlated Bets

Look for bets that are linked. Example: Caitlin Clark scores 25+, and Iowa wins. If she lights up the scoreboard, her team likely comes out on top, boosting both legs.

Avoiding Overloaded Parlays

Stick to 3-4 legs. A 10-leg parlay might look tempting, but the odds are stacked against you. Quality over quantity.

Hedging for Profit

Let’s say Madison hits 3 of 4 legs and only the last remains. She can place a bet on the opposite side of that final game. If her parlay wins, great. If not, she still earns something. Example: Her last leg is Iowa at -110. She bets $50 on their opponent at +120. Now she’s guaranteed to walk away with a profit, no matter what.

Reading Public Trends

When everyone’s betting one way, sportsbooks adjust. Look for opportunities to bet against the public, especially when odds shift too far in one direction.

Final Thoughts

Parlays aren’t just bets—they’re tightrope walks, balancing risk and reward with every leg. They offer an exhilarating way to watch games unfold, turning a small wager into a potential payday. Madison knows she won’t hit every time, but when she does, it’s more than just a win, it’s a victory dance. Use parlays wisely, keep your bets thoughtful, and enjoy the ride.