Betting on sports has evolved significantly over the years, and one of the most popular and intriguing forms of betting is parlay betting. This type of wager offers bettors the potential for massive payouts by combining multiple bets into a single wager. However, while the rewards can be high, so too are the risks. In this article, we’ll break down how parlay betting works, the advantages and disadvantages, and when it’s best to use this type of wager.
What is Parlay Betting?
A parlay bet is a type of sports wager where you combine two or more individual bets into a single bet. For the parlay to win, all of the individual bets, or “legs,” must win. If even one of the legs loses, the entire parlay is lost. However, if all selections win, the payout is significantly higher than placing separate bets on each outcome.
Example of a Parlay Bet
Imagine you want to place bets on three different NFL games:
- Team A to win at odds of +150
- Team B to cover the spread at -110
- Over 45.5 points in Game C at -120
If you place a parlay bet with these three selections, all three outcomes must occur for you to win the bet. If one or more outcomes lose, the entire bet is void, and you lose your stake. However, the payout will be much larger than placing each bet individually, reflecting the increased risk.
How Parlay Betting Works
The allure of parlay betting comes from the potential for large payouts with a relatively small initial stake. This is due to the way the odds of each selection multiply together, increasing the total odds for the bet.
Calculating Parlay Odds
To calculate the odds for a parlay, multiply the decimal odds of each individual bet. For example, if you have the following three selections:
- Team A at 2.50
- Team B at 1.80
- Team C at 1.90
The combined odds for the parlay would be:2.50×1.80×1.90=8.552.50 \times 1.80 \times 1.90 = 8.552.50×1.80×1.90=8.55
If you place a $10 wager, your potential payout would be:10×8.55=85.5010 \times 8.55 = 85.5010×8.55=85.50
This payout is significantly higher than if you placed $10 on each individual bet separately.
Payout Structure
One of the main appeals of parlay betting is the higher payout. The more selections you add to your parlay, the greater the potential payout becomes. However, as you add more legs to the bet, the likelihood of winning decreases dramatically. Parlay bets allow bettors to chase large payouts with relatively small stakes, but they come with the risk of all-or-nothing outcomes.
Types of Parlay Bets
There are various types of parlays bettors can explore depending on the sports and betting markets available. Below are a few of the most common types of parlays.
1. Traditional Parlay
A traditional parlay involves combining multiple bets, such as moneyline, spread, or totals, into a single wager. Each leg must win for the bet to cash out.
2. Same-Game Parlay
Some sportsbooks offer same-game parlays, where bettors can combine multiple bets from a single game. For example, you can combine a bet on the game’s outcome, a player’s performance (such as total rushing yards), and an over/under on the total points in that game.
3. Round Robin Parlay
A round robin is a type of parlay that allows bettors to create multiple smaller parlays out of a larger group of bets. For example, if you have four bets, a round robin can create multiple two-bet or three-bet parlays, which reduces your risk compared to a traditional parlay where all selections must win.
4. Progressive Parlay
In a progressive parlay, you can still win the bet even if one or more of your selections lose. While the payout will be smaller than a standard parlay, it offers a safer way to bet with multiple selections.
Pros of Parlay Betting
1. Higher Payout Potential
The biggest advantage of parlay betting is the potential for higher payouts. Because the odds for each individual bet multiply, parlays can turn a small wager into a significant payout. This makes parlays an attractive option for bettors looking to maximize returns with minimal investment.
2. Excitement and Engagement
Placing a parlay bet can make watching multiple games or events more exciting. Because every leg of the bet is crucial to winning, bettors are more engaged throughout the day as they follow the results of their selections.
3. Flexibility Across Sports
Parlays offer bettors flexibility by allowing them to combine bets from different sports or events. You can create parlays that span multiple leagues or combine different bet types (e.g., moneyline, spread, totals) to suit your preferences.
Cons of Parlay Betting
1. High Risk
While parlays offer the potential for large payouts, they also come with significant risk. If even one leg of the parlay loses, the entire bet is void, and you lose your stake. The more legs you add, the more difficult it becomes to win the bet.
2. Lower Winning Probability
The likelihood of winning a parlay decreases with each additional selection. Even if each individual bet seems likely to win, the combined probability of multiple events happening can be quite low, making parlays a riskier option for long-term profitability.
3. Temptation to Add Too Many Selections
Many bettors fall into the trap of adding too many selections to their parlays in pursuit of a larger payout. While a parlay with eight or ten selections may have an appealing payout, the odds of all those events happening together are incredibly slim.
When to Use Parlay Betting
Parlay betting isn’t suitable for every situation, but there are times when it can be a useful strategy.
1. Small Bets for Big Payouts
If you’re comfortable taking on risk and want to bet a small amount for the chance of a large payout, parlays can be an exciting option. They allow you to turn small stakes into bigger returns if all your selections win.
2. Confident in Multiple Selections
If you have strong confidence in multiple bets for the day, combining them into a parlay can be a way to increase your potential earnings. Just be sure to evaluate each leg carefully to avoid adding unnecessary risk.
3. Fun and Entertainment
For many bettors, parlay bets offer a way to make a day of sports more exciting. Even if you don’t win, following the results of your multiple selections across different games or sports can provide added entertainment value.
Conclusion
Parlay betting is an exciting and high-reward form of wagering that appeals to many sports bettors. With the potential to turn small bets into large payouts, it’s easy to see why parlays are so popular. However, it’s essential to understand the risks involved. While parlays can offer thrilling outcomes, the chances of winning decrease with each additional leg. Therefore, they are best used sparingly and strategically.
If you’re considering trying out parlays, start with smaller, simpler parlays and gradually increase your confidence. With the right approach and careful selection of bets, parlays can be a fun and rewarding part of your betting strategy.
