Parlays in Sports Betting

A parlay (or combination) is a type of bet that requires at least two single bets combined into one, win or lose proposition. If every “leg” (bet) of the parlay wins, the bet pays out. But if even only one leg loses, the entire bet is doomed.

Parlays offer higher odds than a traditional, vanilla straight wager. This article will provide some basic information about parlays.

What Are Some Advantages And Disadvantages Of Parlays?

One advantage of a parlay is that it offers a higher payout than a single, regular bet. Almost all books pay out 2.5/1 on a winning two team parlay. This means that if you pick two games and go 2-0, you will turn every $100 wagered into $250. Another advantage of parlays is that if you happen to go 0-2, you only lose your original bet. So instead of risking $105 or $110 to win $100, you only risk one bet. This makes parlays attractive for gamblers who seem to run “hot and cold” since it tends to maximize their hot streaks while keeping losses lower than they otherwise would be. Also, as the number of legs in the parlay goes up, the payouts drastically get higher. It is entirely possible to risk $10 and have a payout of five figures waiting for you at the end of the day. Your chances of winning may be very slim, but some find it entertaining to spend what amounts to a movie ticket in hopes of cashing in for a new car. However, even these high odds are nowhere near the “true odds,” or breakeven odds of a parlay. Let me explain.

What Are The “True Odds” For A Parlay?

The “true (breakeven) odds” for a parlay bet depend on several factors. The difference between the true odds and the actual, offered odds is where the house edge comes in. Simply put, parlays can become very complicated and involved.

Staying within the scope of this article, let’s start by examining a simple, two team parlay bet that pays the standard 2.5/1, ignoring pushes for this exercise.

Let’s assume you place a parlay and bet Cleveland +6 and under 41 in the same game. Again, ignoring pushes, how many different outcomes are there?

Outcome #1: Cleveland covers +6, game goes under.
Outcome #2: Cleveland covers +6, game goes over.
Outcome #3: Cleveland does not cover +6, game goes under.
Outcome #4: Cleveland does not cover, game goes over.

There are four possible outcomes for each two bet parlay, and only one will result in a payout. However, three times out of four, you will lose your original bet. So the true odds for a two bet parlay should be 3/1 and not 2.5/1. Hence the house edge or “juice.”

The odds unfortunately get worse as you add bets to the parlay. Even adding just one more leg to the parlay, the odds get much, much worse. A three team parlay will hit roughly 12.5% of the time, which would imply an 8/1 payout for it to break even. However, most places only pay 6/1. A simple rule of thumb is to multiply each leg of the parlay by .5 (50%) and that will give you your rough break even win %. So a four team parlay wins roughly 6.25% of the time (.5 * .5 * .5 * .5). You will virtually never be offered higher than the “true odds” of the bet, hence the book makers make a profit in the long run.

You may be wondering what happens if one (or more) legs pushes. Good question. If one or more legs of a parlay push, the bet usually reverts to a lower parlay (for example, a three team parlay with one push then becomes a two team parlay), or a straight bet, in the case of a two team parlay.

Parlays Offer A Unique Risk/Reward Blend

As you can see, parlays can be fun bets to follow, with the chance of a very hefty payday.

The good news with parlays is that you risk only one bet, but you have action on two or more teams, so if you decide to place a few three team parlays and have a truly awful day, you lose a lot less than you would have otherwise by betting each team individually.

At the same time, parlays are generally not considered smart plays by sharp, winning bettors. The reason is that your odds, while they look very nice on paper, actually aren’t as great as they should be, as we learned above.