What is Parlay in Sports Betting?

Parlay Explained in Detail

Parlays are among the most popular bet types because they offer the dream of turning a small wager into a large payout. A $10 two-team parlay might pay $26, while a $10 four-team parlay might pay $120. The more legs you add, the higher the potential payout, but also the lower the probability of winning.

The math behind parlays inherently favors the sportsbook. Each individual bet has a built-in house edge from the vig, and when you multiply those edges across multiple legs, the overall house advantage grows. A two-leg parlay has roughly double the house edge of a single bet, and a five-leg parlay has roughly five times the edge.

Despite the mathematical disadvantage, parlays can be a legitimate strategy in certain situations. Correlated parlays, where the outcomes of the legs are connected, can offer positive expected value. For example, parlaying a team's moneyline with the over in the same game has positive correlation because teams that win often score more points.

Same-game parlays have become extremely popular with sportsbooks because they allow bettors to combine multiple outcomes from a single game. While these are fun and engaging, they typically carry even higher house edges than traditional parlays because the sportsbook prices in the correlation between legs.

Professional bettors generally avoid parlays except in specific correlated situations. Recreational bettors love them for entertainment value. If you do bet parlays, keeping them to two or three legs maximizes your chances of winning while still providing enhanced payouts.