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What is a Parlay Bet?

Written by: Declan Willis

Fact checked by: Martin Pramatarov

Parlay Bet

Are you searching for the parlay bet mechanics? So, you are planning an ambitious wager! Sports gambling is an exciting ecosystem with plenty of options. However, the first step to succeed and avoid painful money losses is to study the mechanics of each wager type before you try it.

Parlay Bet explained

A parlay is a kind of wager that combines multiple individual ones into a single wager. It is also known as combo or multiple bet. All individual wagers or “legs” that make up the combined one must win to win the complete one. If one of them loses, the entire sum is lost. This type can include two and up to 10 or 15 wagers (sometimes, even more). The limit of legs you can include is defined by every sportsbook.

The combo allows you to combine multiple outcomes, like the winner of multiple games, the total points in different games, or player props, into one gambling option. The potential reward is more significant than gambling on each event individually. The different wagers do not simply sum up. They have a multiplier, which gives you better return. Don’t forget that the risk is also higher because you need all the individual legs to win.

Components

Legs. These are the individual bets that make up the combined wager. Even though this type allows multiple legs, there is usually a limit to them. It varies depending on the platform. The best sportsbooks allow between 10 and 15 legs in a single combo, though some may permit even more. Always check the specific sportsbook’s terms, as they dictate the maximum number of legs allowed.

Odds. The odds for each leg are multiplied to create the total odds. The odds are adjusted based on how many legs you include. A larger number of legs increases the potential payout and the risk because you need all bets to win.

Bet types. Each leg can be any type of wager, such as:

  • Moneyline. Wagering on a team to win.
  • Point spread. Putting money on a team to win by a certain number of points.
  • Total (Over/Under). Wagering on whether the total points scored in a game will be over or under a specific number.
  • Props. Putting money on specific outcomes within a game.
  • Futures. Wagering on the outcome of a long-term event.

Understanding Parlay Odds

Understanding the odds is crucial because they directly determine how much you can potentially win, and they also help you assess the risk-to-reward ratio of the wager. You really need to know how the odds work to fully grasp how much you risk and your potential payout.

Sportsbooks generally use American or decimal odds for parlays, so that we will focus on those two formats. Let’s break this down.

Imagine you place a 3-team combo on three different football games:

Game 1: Team A to win (Moneyline)Game 2: Team B to cover the spread (Point spread)Game 3: The total points scored in the game to be over 45 (Over/Under)

Each of these individual wagers has its own set of odds, let’s say:

Team A has odds of -150 to win.Team B has odds of +120 to cover the spread. Over 45 points in Game 3 has odds of -110.

If you were to wager on each of these individually, you would calculate your potential payout by multiplying your wager by each one’s odds. But when you combine them, the odds are multiplied together to calculate the overall odds for the parlay.

American Odds (Moneyline Odds)

Let’s use the moneyline odds to quickly explain the meaning of positive and negative odds. It is essential to understand the following example.

Negative Moneyline Odds (-). They indicate the amount of money you need to gamble to win $100. Following our example with odds of -150, you will need to wager $150 to win $100 in profit. If you win, your total return would be $250 (your original $150 stake plus $100 in profit).

Positive Moneyline Odds (+). These indicate the amount of profit you make on a $100 bet. For example, if the odds are +200, that means for every $100 you wager, you could win $200 in profit if your bet is successful. Your total return would be your $100 stake plus $200 profit, so $300.

Calculating the Parlay Odds. Example.

Getting back to our example, let’s assume you gamble $100 on this 3-team multi wager. You are betting on three separate outcomes, each with different odds, and we will calculate the odds by multiplying the odds for each individual wager together. Here, you have the calculations, step-by-step, in American and decimal odds.

Step 1: Convert the American odds to decimal odds

First, to calculate the odds, we must convert the American odds into decimals. It makes the math easier. Here’s how to do it for each bet:

Team A to win (-150 Moneyline)

American odds: -150

For negative odds (like -150), the formula to convert to decimal odds is:

Decimal odds=1+(100/Absolute value of the negative odds)

So, for -150:

Decimal odds=1+(100/150)=1+0.67=1.67

Decimal odds for Team A=1.67

Team B to cover the spread (+120)

American odds: +120

For positive odds (like +120), the formula is:

Decimal odds=1+(Positive odds/100)

So, for +120:

Decimal odds=1+(120/100)=1+1.20=2.20

Decimal odds for Team B=2.20

Over 45 points in Game 3 (-110 Over/Under)

American odds: -110

For negative odds (-110), use the same formula as for Team A:

Decimal odds=1+(100/110)=1+0.9091=1.91

Decimal odds for Over 45 = 1.91

Step 2: Multiply the decimal odds

Now that we have all three bets in decimal odds format, we can multiply them together to find the total odds.

Here are the decimal odds we need to multiply:

Team A = 1.67

Team B = 2.20

Over 45 points = 1.91

The calculation looks like this:

1.67×2.20×1.91=7.02

7.02-1=6.02

In America odds, this number (6.02) translates to +602 odds

Step 3: Calculate Your Potential Payout

To calculate the potential payout, you simply multiply the total parlay odds by your bet amount.

Let’s assume you gamble $100.

So, the potential payout would be:

Payout=100×7.02=702

It means that if all three bets win, you’ll get $702 in total, including your original $100 stake (so you’ll profit $602).

Summary of the Odds Calculation

Team A to win (-150) → Decimal odds: 1.67

Team B to cover the spread (+120) → Decimal odds: 2.20

Over 45 points (-110) → Decimal odds: 1.91

Multiply the decimal odds:

1.67×2.20×1.91=7.02

7.02-1=6.02 (+602)

So, the total parlay odds are 7.02, and if you wager $100, your potential payout would be $702 (your $100 stake + $602 in profit).

In case of $5, the profit will be (602/100) ×5=$30.1 $10 will get you $60.2.

An excellent profit! Just consider that the only way to win at parlay betting is to correctly hit all the bets included in the combination.

Why Choose a Parlay Bet?

  • Higher payouts – This combo wager offers the opportunity to win more significant amounts than the legs due to the compound odds.
  • Low investment – A combination wager allows bettors to risk smaller amounts while still chasing substantial returns.
  • Excitement and engagement – Combining multiple games or outcomes can make the betting experience more thrilling as you follow the results of several events. This type of gambling is the next level of excitement and complexity for bettors looking for bigger challenges and emotions.
  • An option for risk-tolerant gamblers – Those comfortable with higher risk for the chance of larger payouts will find it appealing.
  • A choice for sports experts – Individuals with solid knowledge of multiple sports, teams, or matchups can make more informed selections to increase their chances of success.
Verified by:Declan WillisAuthor at GameZinger.com
Last updated: 31.01.2025
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Other Things to Remember

  • Rules differ among sportsbooksAlways understand the specific rules of the platform you choose before engaging.
  • Possible cancellationSome sportsbooks might void a wager if one of the games is canceled.
  • A “Push” scenarioA push is when the wager lands on the exact number offered by the sportsbook. Your money gets refunded since the outcome is a tie. Neither the bettor (you) nor the bookmaker wins or loses. If a game in your combination results in a “Push,” for instance, there is a tie against the point spread or total, then that leg is removed from the calculation, and the odds are recalculated.
  • Same-game parlaysMany sportsbooks now allow you to combine wagers from the same game. It means you can gamble on multiple outcomes in one game, such as wagering on a team to win, a player to score, and the total points and combine them into a multi wager.
  • Teasers and pleasersThese are types of parlays where you adjust the point spreads in your favor (teasers) or against you (pleasers). You can find both types in many sportsbooks. So, better known that in a teaser, the sportsbook allows you to modify the spread or total for multiple games in exchange for a lower payout. A pleaser gives you the opposite: a worse spread or total but for a higher payout.
  • Sport and market restrictionsSome platforms might restrict the number of legs based on the sport or type of bet (props, live, futures, etc.).
  • Odds capsThere is no standard limit of legs you can include within a combination. It varies among sportsbooks. However, some sites set a maximum payout, or odds limit, indirectly capping the number of legs that can be realistically included.
  • Multi-sport parlayIt is possible to place a multi bet on different sports at one time. Multi-sport combos are very common, but their availability and rules can change based on every sportsbook.

Quick Recap

  • A parlay is a bet that combines multiple individual wagers into one, with the condition that all legs must win for the total wager to be successful.
  • Higher payouts. These wagers are riskier. Sportsbooks know it, so they offer higher payouts for combinations than individual bets. The odds increase exponentially with more legs (individual wagers), making parlays tempting due to the high potential payout.
  • It has increased risk. The more legs you add, the harder it is to win because you need all the individuals to hit. Only one loss means the entire sum is lost.
  • Variety of betting options. It allows you to combine different types of wagers (moneyline, spread, over/under, etc.) into one wager. So, you should understand the rules of every wager to know how you win or lose.
  • The combos are not for beginners. From a mathematical standpoint, they are generally not the most favorable approach for a beginner. Although the potential payouts can be enticing, the odds tend to be lower than they should be based on the probability of the wager hitting. There is a learning curve to master the mechanics and possibilities of every type. We recommend taking it easy before trying this one.
  • This type of gambling is best suited for strategic, patient bettors who understand the low probability of success, especially as more selections are added to the wager. It’s a tool for maximizing entertainment and potential profit but should be used responsibly to prevent unnecessary losses.
  • Winning a parlay is not very easy, but it is highly gratifying and thrilling when it happens. For beginners, it’s essential to understand the risk involved and use combinations selectively. They can be a fun way to increase potential winnings, but they are generally not the best strategy for consistent long-term success.
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