What is a Parlay in Sports Betting?

There’s few things better than settling down for a weekend of sports betting with a multi-game parlay in hand. 

A parlay offers a fantastic opportunity to grab massive odds, and can be one of the most exciting ways to bet. 

Before you dive in though, we’ll explain to you exactly how the wonderful world of parlays work.  

A parlay bet is simply a bet that allows bettors to combine multiple selections on one betslip. It comes with greater returns than just making one selection. 

For you to win your bet, all of your selections must win. By making just one incorrect selection, the entire bet will be lost. 

It’s a high risk, high reward type of betting, as the multiplicative nature of returns means you have the potential to make large returns off a small stake. 

Once you’ve understood what is a parlay in sports betting, you’ll need to know how to place one. 

Luckily, it’s fairly simple to do. Head to your favorite sportsbook and simply make your selections. As you do so, they’ll be added to the betslip and you’ll be presented with the final odds of your parlay.

Simply click ‘Place Bet’ and you’re done. 

Although it may seem daunting to calculate the payout on a parlay, we’ve outlined a quick step-by-step guide for you so you can figure out your returns.

1. Take the decimal odds of each selection
2. Multiply the odds together
3. Take your planned stake, and multiply it by your new decimal odds
4. Subtract your stake from the number provided, and you’ll have your potential profit

For simplicity, if you’ve picked three matches all with odds of 3.00, you can calculate your returns on a $10 stake like so:

1. Multiply the odds: 3.00 x 3.00 x 3.00 = 27.00
2. Apply your planned bet: 27.00 x $10 = $270
3. Calculate your profit: $270 - $10 = $260

The more selections you add, the quicker your odds will rise. However, with every pick so too comes greater risk.

The easiest way to answer the question ‘what is a parlay in betting?’ is to give you an illustrative example.

A winning or losing parlay

Let’s imagine a five-leg parlay: 

• Baltimore Ravens to beat Arizona Cardinals @ 2.50
• New England Patriots to beat Jacksonville Jaguars @ 1.75
• Kansas City Chiefs to beat Seattle Seahawks @ 2.10
• Manchester City vs Manchester United Over 2.5 Goals @ 1.50
• Southampton and Leeds United, Both Teams to Score @ 1.65

The odds, per the above equation would be 22.74 meaning a $10 wager would return $227.40 (including stake). 

If all five legs win, the parlay will settle as a winner and the full payout will be earned.

If any of the five legs lose, the parlay will settle as a loser and the stake will be lost.

The most common deviation from the above would be if one fixture does not take place (if snow prevents the fixture, for example) and then a selection will be void. 

In the case of a void selection, the parlay will still remain except the one leg will be removed. If the Baltimore Ravens game was postponed, the odds would then be computed as 1.75 x 2.10 x 1.50 x 1.65, giving odds of 9.10. As a result, a $10 stake would return $91 (incl stake) instead of the full $227.40 should the Ravens game have taken place (and the Ravens have won).

A push in a parlay bet will occur if you back a “Draw No Bet” outcome, where should a match be tied, your bet will be a tie between you and the sportsbook. Effectively, neither you nor the sportsbook won the wager.

In a parlay, a push will be treated the same way as a void. The bet will effectively be removed from the wager, and the parlay will become less selections with the same overall stake. 

The two main benefits of parlays are excitement and higher potential payouts, both of which go hand in hand.

A parlay could almost be considered like the lottery, there’s huge potential for a big payout off a small stake. You’re never going to see an outsider at odds of 1250.0, but by crafting a multi-leg parlay, you can quickly see the odds rise into triple figures and above.

In addition, if you enjoy watching multiple matches across multiple sports then a parlay is a way to get the excitement of having a bet without having to place individual wagers on each game you plan on watching.  

Have no doubt, there’s a reason that parlays are amongst the most profitable products in a bookmaker’s arsenal. The chance of winning, as more selections get added, becomes naturally smaller. 

A bookmaker prices its odds to always have a margin on the implied probability, and when these are stacked up in a parlay the margins get wider and wider. 

They’re also higher risk by nature. You could make seven great selections in one weekend that would guarantee you a profit should you bet on them all individually, but when the eighth loses in a parlay, you’re left with no return at all. 

Round robin parlays are a different product, which are effectively a parlay made up of several smaller parlays. 

If you make four selections, then there are effectively 11 different parlays possible. This would be six twofold parlays, four threefold parlays, and one fourfold parlay. 

In total, placing a round robin wager would place 11 wagers in total, covering each combination of your four selections. 

It means you place 11 stakes, but also have the potential for a return if just two of your selections come in. The returns will increase the more selections you win, with the maximum return should all four win.