Sports Betting Parlays Explained
Parlays are one of the most popular bet types in sports betting. But how do they work, and why do they appeal to so many bettors? In this guide, we’ll break down what a parlay is, how payout odds work, and the difference between traditional parlays and same game parlays (SGPs). Whether you're new to parlay betting or refining your strategy, this covers the essentials.
Key Takeaways
Parlays breakdown
Parlay odds
Same game parlays
Parlays summarized
What Is a Parlay in Sports Betting?
A parlay is a single bet that combines two or more individual wagers. To win the parlay, every leg must hit. If even one leg loses, the entire bet is a loss. If a bet pushes, the payout of the parlay is recalculated.
Why Parlays Are Popular
Parlays offer high payouts for small stakes. That’s because each added leg increases the risk, but also multiplies the potential return. It’s a high-risk, high-reward play that appeals to both casual and experienced bettors.
For casual sports bettors, they are more enamored by the lower stakes needed to win more. Sharp sports bettors bet parlays because they compound expected value, so a parlay consisting of 2+ +EV legs can make a parlay a great bet.
Example
Traditional Parlay Example:
Leg 1: Team A moneyline
Leg 2: Team B spread
Leg 3: Over 215 total points
If all three hit, the bet wins. If one misses, the bet loses.
Parlay Payout Odds: How They’re Calculated
The payout from a parlay is based on the odds of each individual leg. As you add more legs, the odds increase, as do the potential profits.
Understanding the Odds
Most sportsbooks automatically calculate the combined odds for you, but the formula generally multiplies the decimal odds of each leg. The more legs, the longer the odds, and the bigger the potential payout.
Boosts and Promotions
Some sportsbooks offer parlay odds boosts that improve your payout without increasing your risk. These can add value, but should still be used with smart bet selection. Parlays compound expected value. Adding more legs to your parlay that are bad bets will make your parlay a bad wager, but a parlay consisting of +EV legs is a great bet, even if the hit rate of these bets is low.
Same Game Parlays: What Makes Them Different?
Same game parlays (SGPs) let you build multiple legs from a single game. These bets often include player props, team totals, or alternate spreads, all tied to the same event.
How SGPs Work
Leg 1: Team A to win
Leg 2: Their QB to throw 2+ touchdowns
Leg 3: Opposing RB under 60 rushing yards
Since these legs are correlated, depending on the scenario, they can boost or reduce the real odds of success. That’s why SGP strategy matters. Most sportsbooks take a correlation tax on parlays, meaning they will not increase the odds of the parlay based on the true odds of each leg if the legs are correlated.
Risk with Correlation
SGPs can offer bigger payouts, but correlated legs may be adjusted by the sportsbook to reduce value. Always check how the book prices your parlay, especially if you’re stacking outcomes that depend on each other. Some sportsbooks offer better odds for inverse correlation.
Parlays & Same Game Parlays Summarized
Hopefully, you now have sports betting parlays explained in a way that’s clear and actionable. Whether you’re testing out traditional parlays or experimenting with same-game parlays, remember the basics: every leg must hit, payout odds scale with risk, and a smart multi-leg betting strategy can make all the difference.
Lastly, never forget parlays' compound edges. The better the bets in your parlay, the better the bet, win or lose. The worse the legs are, the worse off your bet is, and parlays can quickly become a bankroll suck for newer sports bettors.
Final Thoughts
Parlay betting is popular, but it can also be dangerous. Newer sports bettors are drawn to parlays since they can risk less money to win more, but if the legs in your parlays are all -EV, they can be a bankroll crusher. More advanced sports bettors can have a lot of success with parlays.
Frequently asked questions
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