What is a Parlay Bet?: Parlay Betting Complete Guide

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Dec 17, 2019 9 min read Last updated Aug 29, 2024

Parlay betting is an increasingly popular way to bet on sports. It also remains one of the most misunderstood. How many times have you found yourself asking "what is a parlay?" to one of your betting friends, only to end up none the wiser. Here, we attempt to unravel the mystery.

What is a Parlay Bet?

In short, a parlay bet is a way of combining single bets, but with larger, overall odds, seeing as each individual bet must win for the parlay to pay out.

The lure of a larger payout makes this type of bet an attractive option for sports bettors. Parlay bets are especially popular with those who enjoy betting on NFL and NCAA football.

How Parlay Betting Works

To place a parlay bet, you add each of your selections to your online betting slip, just as you normally would. The difference is that you click on the "Parlay" option.

Your payout can then be calculated in one of two ways. One way is by using the fixed odds chart. This is used when placing a bet on either the totals or the point spread. These odds are typically 50/50 chances at odds of -110. A fixed odds chart might show two selections payout at +260 and three selections at +600. These can mount up quickly, as eight selections pay out at around 150/1.

A parlay is more complicated when there are different odds for each selection. This is even more the case when betting on the money line. All of your initial bets will be placed on your first selection, and if that selection wins, your return is as it would be if you were placing a single bet. However, rather than that money being credited to your account, it’s automatically placed on to your next section. This continues until your final selection is made.

Parlay Betting Odds

The two most popular types of parlay bets are the money line and point spread. With spread betting, you pick multiple teams to beat the spread. It’s a great way to add excitement to a weekend of football.

Parlay bets that use the point spread are based on fairly standard odds. You can expect to see odds like those below.

When it comes to the money line, parlay betting odds are relative to the odds of each individual pick. If you select multiple underdogs, your odds will obviously be longer. Conversely, if you choose multiple favorites, you can expect the odds to be shorter.

The odds can be confusing when it comes to parlay betting. Fortunately, you can always find a parlay calculator online to help simplify things.

Other Types of Parlay Betting

• Teasers
• Pleasers
• Round robins

The teaser is a parlay where you can adjust the money line or point spread in your favor for each selection. A teaser typically adjusts the line by six points. If betting on a team to win by 10+ points, for example, you can bet on them to win by four or more points. While you will get lower odds than a traditional parlay bet, you'll find that wins are easier to come by.

The pleaser works in the opposite way to a teaser because you’re moving the line the other way, which makes each of your selections more difficult. However, you can also expect to win a larger payout.

A round robin parlay bet is where you place multiple parlays at the same time. You choose from between three and eight teams for your round robin. Then you decide on the number of teams or totals you’d like to tie together. You may decide on eight teams, for example, and tie the parlays to as many three-team combinations as possible. The team combinations will determine the number of different parlays you have. If you have eight teams in your round robin, you will have 28 different parlays if you choose two teams. If you make three-team parlays, you will have 56 different parlay tickets.

Advantages and Risks of Parlay Betting

Parlay betting offers the potential for substantial payouts from a relatively small wager. For example, if you bet $10 on a three-team parlay with individual odds of +200, +150, and +250, the combined payout could exceed $200 if all selections win. This high-reward potential is why many bettors are drawn to parlays. In sports like football, combining bets across multiple games or events (e.g., betting on three NFL teams to win) can significantly increase the excitement and the payout.

However, parlay betting also comes with higher risk, the primary one being its "all or nothing" nature. If even one of the selections loses, the entire bet fails. For example, if you bet on a five-team NBA parlay and four teams win, but one team loses, the entire parlay loses, regardless of the successful bets. The difficulty in hitting multiple outcomes correctly means that parlays are inherently risky, making them less suitable for novice bettors or those looking for consistent returns. It’s essential to recognize that while the potential rewards are high, the chances of winning are significantly lower than single bets.

Parlay Betting Strategies

There is no parlay betting strategy that is going to guarantee that you win, and successful parlay betting requires a mix of discipline and strategy. Some suggestions that you might find useful include:

Limiting Selections
One effective strategy is to limit the number of selections in your parlay. For example, instead of betting on five or more games, you might choose a two- or three-game parlay. In soccer, you could bet on just three teams to win their respective matches. This approach reduces the risk and increases the likelihood of winning, although the payout will be smaller.

Mixing Favorites and Underdogs
Combining favorites and underdogs can balance the odds and potentially increase payouts. For instance, in a tennis parlay, you might pick two strong favorites and one underdog. If the underdog wins, it can boost the overall payout, while the favorites increase the chances of the parlay hitting.

Teasers and Round Robins
Teasers allow you to adjust the point spread or totals in your favor, which can be beneficial in sports like basketball or football. For example, if the New England Patriots are favored by 7 points, a teaser could reduce the spread to 1 point, making it easier for the bet to win. Round robins provide a safer alternative by creating multiple parlays from your selections, so you don’t lose everything if one selection fails.

Common Mistakes in Parlay Betting

As already mentioned, successful parlay betting requires a mix of discipline and strategy, and just as with any other form of sports betting, there are some common mistakes which bettors tend to make.

Adding Too Many Selections
A common mistake is adding too many selections to a parlay. The more selections you add, the lower your chances of winning. For example, in an NHL parlay with eight teams, the odds of hitting all eight correctly are very slim, even if you feel confident about each individual game.

Overestimating Knowledge Across Multiple Sports
Bettors sometimes overestimate their knowledge across different sports, leading to poor decisions. For example, combining an NFL, NBA, and MLB game into a single parlay might seem exciting, but unless you have deep knowledge of all three sports, it increases the risk of failure. Stick to sports where you have the most expertise.

Chasing Losses
After a loss, some bettors attempt to recover by placing another parlay with even more selections or higher stakes, which can lead to further losses. For example, if you lose a four-team soccer parlay, placing a six-team parlay on the next day’s matches is likely to be a poor strategy. It's crucial to remain disciplined and not let emotions drive your betting decisions.

Using Parlay Calculators

Parlay calculators are essential tools for bettors looking to understand potential payouts and manage risks.

By entering the odds of each selection, a parlay calculator quickly shows the total payout, helping you decide if the potential reward justifies the risk. For example, if you’re considering a five-team parlay across different sports (like football, basketball, and hockey), the calculator will give you a clear picture of the potential returns.

Additionally, these calculators can convert different odds formats (e.g., American, decimal, fractional), making them useful for international bettors and those who prefer different betting formats.

Where can I get a free parlay bet?

Below are just some of the options for getting a sports free bet.

FanDuel has quickly become one of the top names in sports betting. It clearly knows how to attract new customers, and a part of that attraction is its $500 free bet for those making their first deposit. You can bet up to $500, and if you don’t win, you get your money back. That presents a great opportunity to try parlay betting for the first time.

Parlay Bet FAQs