What Is a Parlay Bet? Complete Guide with Examples
Parlays can turn a small bet into a huge payout — but they're also the book's favorite tool to take your money. Here's everything you need to know about parlay betting.
A parlay is a single bet that combines multiple individual wagers — all of which must win for the parlay to pay out. The more legs you add, the higher the potential payout, and the higher the risk. Parlays are the most popular bet type in the US, and also the most profitable for sportsbooks.
How a Parlay Works
Say you want to bet on three NFL games:
Instead of betting each separately, you combine them into a parlay. To win:
The payoff: If all three hit, your payout is far higher than betting each game individually.
How Parlay Odds Are Calculated
Parlay odds multiply the decimal odds of each leg together.
Converting the above to decimal:
Multiply: 1.909 × 1.909 × 1.769 = 6.45
So a $100 three-leg parlay at these odds pays about $545 (profit of $445) if all three legs win.
At true odds (no vig), a three-leg parlay on three -110 games pays about 6-to-1. Most books pay slightly less — this is the "parlay vig" that makes parlays slightly worse value than betting each leg individually.
Types of Parlays
### Traditional Parlay
All legs must win. One loss = total loss. As described above.
### Same-Game Parlay (SGP)
Multiple bets within the same game combined into one parlay. DraftKings pioneered this — for example, betting Patrick Mahomes over 300 yards AND the Chiefs to win AND Tyreek Hill to score a touchdown in the same game.
SGPs have become enormously popular because fans understand the storylines. However, sportsbooks often cap payouts or adjust lines on SGPs because the legs are correlated (Mahomes throwing 300 yards makes a Chiefs win and Hill's touchdown more likely — the book accounts for this correlation).
### Correlated Parlay
When two legs have outcomes that tend to move together. Traditional books don't allow these (they'd be too favorable to bettors). Same-game parlays are a limited form of correlated parlay that books specifically design and price.
### Round Robin
A series of smaller parlays from a larger group of teams. Choosing 4 teams and creating "2-leg round robins" means you create all possible 2-team combos from those 4 teams — 6 parlays total. You can win even if not all teams win.
Parlay Odds vs Straight Bets: The Math
If you bet three -110 games for $100 each (total $300), and win all three:
If you bet those same three games as a $100 parlay and win:
But to win the parlay, you need all three. A 3-leg parlay on 50% games (coin flip) wins only 12.5% of the time. Three separate bets each win 50% of the time.
The book's edge increases with parlay legs. The more legs you add, the more the book extracts in vig.
When Parlays Make Sense
Entertainment: A $10 five-leg parlay gives you five games to root for with a big potential payout. As entertainment, it's excellent value.
Bonus bets: Bonus bets don't return your stake if they win — only the profit. A $50 bonus bet on a +800 parlay returns $400 in real winnings. The same bet on a -110 straight bet returns $45.45. For bonus bets specifically, higher-odds parlays maximize real money extracted.
Small accounts, big targets: If you have $100 and want to experience a meaningful payout, a small multi-leg parlay is more interesting than 10 separate $10 bets.
When Parlays Don't Make Sense
As a primary strategy: The combined vig on a 4+ leg parlay makes it a -EV proposition even with accurate picks. Professional bettors almost never parlay; they bet individually and find value leg by leg.
As a loss-chasing tool: "I'll just hit this 5-teamer to get back to even" is one of the most destructive thought patterns in sports betting. If you're down, a parlay rarely gets you back to even — it usually makes things worse.
Best Sportsbooks for Parlays in 2025
DraftKings: Best same-game parlay builder. Regular "Profit Boost" promotions on parlays.
FanDuel: Strong SGP offerings with "Same Game Parlay Plus" (SGP+ across multiple games).
BetMGM: "One Game Parlay" insurance — if one leg loses, you get some money back.
FanDuel: "Parlay Insurance" on select bets — one leg can lose and you still get refunded.
The Bottom Line
Parlays are exciting, and a small parlay with friends during a big game is one of the best ways to watch sports with money involved. Just go in with clear eyes: every leg you add increases the book's edge. Treat parlays as entertainment, not as a primary betting strategy, and you'll enjoy them without doing real damage to your bankroll.
BetSpective Editorial Team
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