Parlay Betting Explained: How It Works & What You Need to Know

The parlay bet is one of the most iconic forms of gambling there is. It is a wager that can have massive payoffs, so gamblers must be aware of this form of betting. In this parlay betting guide, we will give you the complete rundown on parlays, including what they are, how they work, and why you should use them. Ready? Let’s go!

Parlay betting is a form of wagering where gamblers elect to combine multiple bets into a single bet slip. For parlays to cash, each element, or leg, of the parlay will need to hit.

Parlays are found on all Canadian betting sites as one of the primary ways to wager. Gamblers love them, because the payouts can reach exorbitant heights.

A leg of a parlay can be a variety of different things. It can be a bet on Moneylines or point spreads. Each leg of a parlay will have different odds, and as they’re combined into a single bet, the parlay odds will increase. So, the more legs your parlay has, the higher the winnings.

It is also worth noting that while parlays tend to pay out more, they are also much riskier. The more parlay picks are made, and the more legs a wager has, the less likely the bet is to cash. So gamblers should be cautious and not get carried away by the higher payouts that these bets provide.

How Do Parlays Work?

As we've mentioned, parlays combine several odds into one single bet. Say there are two teams you think will win, one with -210 odds and the other with -215. Rather than betting on both separately, on those odds, you can combine them into a two-leg parlay, which then has odds of +116.

Below, we’ll show a quick example of how a parlay bet looks on a sportsbook like FanDuel, showing the odds we’ve mentioned above.

Parlays can be slightly confusing. Placing a parlay bet is a straightforward process, but truly understanding what you are doing may be a little more confusing.

To help you through the parlay betting process, below we will craft some parlay bet example options for you to consider, looking at several different kinds of parlays.

• Two Leg: The easiest type of parlay to understand is a two-leg parlay, as it has the lowest possible amount of legs for a parlay bet. Let’s look at an example. Say you are wagering on the final results for two leagues, so you do Super Bowl betting and bet on the winner for the Stanley Cup. You can pick the Chiefs at +390 and the Hurricanes at +750. Or you can pick a parlay, putting those two results together at +4065.
• Three Leg: As we’ve mentioned, the more legs there are in a parlay, the higher the payout tends to be. Consider the previous example with the Hurricanes and Chiefs. Say we chose to add the Celtics to win the NBA Championship at+200. The odds would then jump from +4065 to +12395.
• Four Leg: As we’ve mentioned, the more results the parlay has the higher risk it is and the bigger the payouts. Continuing with our example, if we were to add the Los Angeles Dodgers at +320 to win the World Series to our parlay, the odds would jump from +12395 to +52379, and we’d need all four of those teams to win to see a return.

Understanding Parlay Odds

Understanding how parlay odds work can be a little confusing, as the process is complicated. However, simply put, the odds for a parlay bet multiply, with the more odds included leading to more multiplying factors.

This is done through decimal odds. Let’s consider this. Say there are four odds of -110 being parlayed together. Convert these odds to decimal format, which is 1.91, then multiply it by the number of odds in the parlay (4), so 1.91x1.91x1.91x1.91=13.30.

Then, multiply that amount by what you would bet, like, for example, $10x13.30=$133, and subtract your bet amount ($10). That is how much profit a bet would provide.

As we've said, parlay betting is something bettors should be relatively cautious with, as it has high-risk, high-reward potential. Gamblers should be careful to ensure that they are being as wise as possible when crafting their parlays.

The key is to try to find two odds where you are confident all outcomes will occur. Parlays will not cash if ¾ of the legs hit, or even 12/13. Every single element needs to cash.

Bettors can also use parlays as a way to bet on multiple favourites. Consider this. The Eagles are -340 to win their game, the Colts are -405 to win theirs, and I expect both teams to win and want to wager on them.

If I bet $5 on each individually, I will earn a combined $2.70 in profit if both bets cash. Not exactly enticing!

However, if I bet $10 on a parlay that both teams will win, I will earn $6.14 in profit if the result occurs. A much more appealing bet!

The key to crafting a parlay is risk assessment. Understand the odds, be cautious, and do your research! Remember, the more legs included, the more risk there is as well!

How to Calculate A Parlay

As we mentioned above, calculating a parlay requires converting the American odds to a decimal format and multiplying the odds by each other.

Parlay betting multiplies odds by the number of legs in a parlay. The higher the odds are and the more legs there are in the parlay, the bigger the payout is going to be if it hits.

Tips and Strategies

There are several core tips and strategies you should implement to get the most out of your parlay betting experience.

1. Parlay Favourites: Parlaying together a couple of heavy favourites is a low-risk form of parlay betting that can enhance your overall payouts.
2. Don’t Get Carried Away: That 15 leg parlay could change your financial future, but it probably will never hit! Don’t get caught up in the big money potential, be a realist.
3. Mix It Up: Parlays can be many different markets, so consider adding in different markets.
4. Same-Game Parlay According to One Outcome: Pick how you think a game will go and stick to it if you are same-game parlaying. That means if you think a team will win a high-scoring affair, pick the team on the Moneyline, the over to hit, and the quarterback to exceed their passing yard total, for example.

Parlays are a great way to start padding your winnings, but they are also far from a safe bet. While we do recommend that gamblers explore what parlays have to offer, we also emphasize that they are aware that this is hardly free money, and your odds of hitting massive parlays are not high.

If you want to know the full truth about parlays and break down some of the myths, we are exploring the pros and cons of parlays below.

Parlays can be inherently quite confusing, as there is a lot of math that goes into them, as well as a ton of associated rules. If you have questions about parlays, we have answers. Below are answers to the most frequently asked questions about parlay betting.

Parlays are an integral part of the sports betting experience. They can lead to massive payouts where users receive a huge influx of additional money, but they also come with heightened risk. Gamblers who take the time to learn the ropes with parlays and understand what they are getting themselves in for will find these to be an invaluable part of their gambling toolbox and a great way to secure some major wins.