Parlay betting has become increasingly popular among sports bettors looking to maximize their potential winnings from a single wager. While the concept might seem complex at first, understanding how parlays work and how payouts are calculated can help you make more informed betting decisions.
Understanding Parlay Bets
A parlay bet combines multiple individual wagers into one single bet. To win a parlay, every individual bet (called a “leg”) within the parlay must win. If even one leg loses, the entire parlay loses. This all-or-nothing nature is what makes parlays both exciting and risky.
For example, you might create a three-team parlay by betting on the Lakers to win, the over in a football game, and a tennis player to cover the spread. All three outcomes must occur for you to win the parlay bet.
Types of Parlay Bets
Parlays can include various types of bets, including point spreads, moneylines, totals (over/under), and prop bets. Most sportsbooks allow you to combine different sports and bet types within a single parlay, though some restrictions may apply. You can typically create parlays with anywhere from two to fifteen legs, depending on the sportsbook.
How Parlay Payouts Are Calculated
Parlay payouts are calculated by multiplying the odds of each individual bet together. Here’s how it works:
American Odds Method: If you’re using American odds (like +150 or -110), the calculation involves converting each leg to decimal odds, multiplying them together, then converting back to determine your payout.
Decimal Odds Method: With decimal odds, the calculation is straightforward. Simply multiply all the decimal odds together, then multiply by your stake.
For example, if you have a three-team parlay with decimal odds of 1.91, 2.10, and 1.83:
- Total odds = 1.91 ร 2.10 ร 1.83 = 7.34
- A $100 bet would return $734 (including your original stake)
- Your profit would be $634
Fixed Payout Tables
Many sportsbooks use fixed payout tables for standard point spread and totals parlays (typically -110 odds). Here are common payouts:
- 2-team parlay: 2.6 to 1 (13/5)
- 3-team parlay: 6 to 1
- 4-team parlay: 10 to 1
- 5-team parlay: 20 to 1
- 6-team parlay: 40 to 1
These fixed payouts often offer slightly lower returns than true odds calculations, representing the sportsbook’s built-in advantage.
Risk and Reward Considerations
While parlays offer the potential for substantial payouts from relatively small stakes, they’re significantly more difficult to win than individual bets. The probability of winning decreases exponentially with each additional leg. A bettor with a 55% win rate on individual bets would only have about a 17% chance of hitting a three-team parlay.
Smart Parlay Strategies
If you choose to bet parlays, consider these strategies: limit the number of legs to increase your chances of winning, avoid including heavy favorites that don’t significantly boost payouts, and never bet more than you can afford to lose. Some bettors use small parlay bets as “lottery tickets” while focusing most of their bankroll on single-game wagers.
The Bottom Line
Parlay betting can add excitement to your sports wagering experience and offer the potential for significant returns. However, the increased difficulty of winning multiple bets simultaneously means parlays should be approached with caution. Understanding how payouts are calculated helps you evaluate whether the potential reward justifies the increased risk, allowing you to make more educated betting decisions that align with your bankroll management strategy.
