What Does Parlay Mean? How Parlays Work in Sports Betting
A parlay combines multiple bets into one with higher payouts but higher risk.
By
Eric Pauly
Feb 6, 2026
0 min read
What Is a Parlay?
A parlay is a single bet that combines two or more selections. All selections must win for the parlay to pay. If any one leg loses, the entire parlay loses. In exchange for this higher risk, the payout is significantly larger than betting each selection individually. A 3-leg parlay at standard -110 odds pays around +595, meaning you'd win roughly $595 on a $100 bet if all three legs hit.
Parlays are among the most popular bet types despite being mathematically unfavorable in most situations. The appeal is obvious: small stakes can generate large returns. I remember the first parlay I hit, a 4-team NFL parlay that turned $25 into $300. That feeling hooked me on parlays for months before I understood the math. This guide explains what parlays are, how they work, and the important considerations before adding them to your betting approach.
article Summary
A parlay combines multiple bets where all selections must win for the bet to pay. Payouts are higher because probability is lower. A 3-leg parlay at -110 per leg pays around +595. Parlays are popular for their excitement and potential big wins, but the math typically favors the sportsbook more than straight bets do. Use parlays strategically, not as your primary betting method.
How Parlays Work
Combining Selections
You select two or more bets and combine them into a single wager. Each selection is called a "leg." The legs can be spreads, moneylines, totals, props, or any combination. They can be from the same game (same game parlay) or different games. The only requirement is that all legs must win for the parlay to pay.
Calculating Parlay Odds
Parlay odds multiply together. Convert each leg to decimal odds, multiply them, then convert back to American odds. For three legs at -110 each: -110 = 1.909 decimal. 1.909 x 1.909 x 1.909 = 6.95. Convert back: +595 American. Most sportsbooks calculate this automatically on your bet slip. The more legs, the higher the multiplier, but also the lower the probability.
Why All Legs Must Win
The parlay's higher payout comes from the compound probability. Each leg you add multiplies risk. At 50% win probability per leg, a 2-leg parlay has 25% probability of winning (0.5 x 0.5). A 3-leg parlay has 12.5%. A 5-leg parlay has just 3.125%. The payout compensates for this low probability, but often not fully, which is where the sportsbook makes extra profit.
Parlay Payouts
Standard Parlay Odds
At -110 per leg (standard spread/total odds), approximate payouts are: 2-leg: +264 ($264 profit on $100). 3-leg: +595 ($595 profit). 4-leg: +1,228 ($1,228 profit). 5-leg: +2,435 ($2,435 profit). These payouts look attractive, which is why parlays are popular. The flip side is the low probability of hitting.
Mixed Odds Parlays
When legs have different odds, the parlay calculation adjusts. A parlay of +200, -150, and -110 pays differently than three -110 legs. Sportsbook bet slips show the exact odds and potential payout. Including underdog legs (+150 or higher) significantly boosts the parlay payout but also makes it harder to hit.
Parlay Insurance and Boosts
Many sportsbooks offer parlay promotions: insurance (refund if one leg loses), boosts (increased payout percentages), or same game parlay specials. These promotions can improve the math in specific situations. Evaluate each promotion individually since not all are good value. Some are marketing tools that still favor the house.
When Parlays Make Sense
Correlated Parlays (When Allowed)
Some outcomes are correlated: if a team wins by a lot, they're more likely to cover AND the over might hit. Sportsbooks restrict many correlated parlays, but when allowed, correlation can improve parlay math. If two outcomes are positively correlated, the parlay might offer better value than the independent odds suggest.
Small Stakes, Entertainment Value
If you're betting small amounts for entertainment, parlays maximize excitement per dollar. A $10 parlay can pay $100+ if it hits, creating stake in multiple games. This is a legitimate use case as long as you're budgeting for entertainment, not expecting long-term profit.
Specific Value Situations
If you've identified multiple genuine value bets, combining them into a parlay compounds the edge. However, this only works if each leg is actually +EV. Parlaying bad bets just multiplies the negative expectation. If you're not confident each leg offers value on its own, the parlay doesn't magically create value.
When Parlays Don't Make Sense
As a primary betting strategy, parlays are usually losing propositions. The sportsbook takes extra margin on parlay odds beyond the vig on individual bets. Over time, this margin erodes your bankroll faster than straight betting. Professional bettors rarely parlay because the math is worse than betting individually.
Parlay Variations
Same Game Parlays (SGPs)
Combine multiple bets from a single game: team spread + player prop + total. SGPs have become extremely popular but often carry worse odds than multi-game parlays because outcomes are correlated (which the sportsbook prices in against you). Use SGPs for entertainment, not as a value strategy.
Teasers
Teasers are parlays where you adjust spreads in your favor in exchange for reduced payouts. All legs must still win. In NFL, 6-point teasers that cross key numbers (3 and 7) can offer value. See our teaser guide for when they make sense.
Round Robins
Round robins create multiple parlay combinations from your selections. Three teams generate three 2-team parlays. If one loses, you lose one parlay but the others can still pay. This offers partial protection while maintaining parlay structure. Our round robin guide covers the math.
Progressive Parlays
Some sportsbooks offer progressive parlays that pay reduced amounts if one leg loses. These are typically poor value because the reduced payouts don't compensate for the "insurance." Calculate the expected value before assuming any promotion benefits you.
Final Thoughts
Parlays combine multiple bets into one high-risk, high-reward wager. All legs must win, which makes parlays statistically challenging but emotionally exciting. The appeal of turning small stakes into large payouts keeps parlays popular despite unfavorable math compared to straight betting.
Use parlays intentionally. They're fine for entertainment with money you've budgeted to lose. They can compound edge when every leg offers genuine value. They're poor as a primary betting strategy because the sportsbook's extra margin on parlay odds erodes your bankroll over time. For more on parlay strategy, check out our comprehensive parlays guide. For finding value in individual bets that might be worth parlaying, explore betting tools and odds comparison.
Parlay Betting FAQ
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