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Parlay Bets Explained: How They Work and Why They’re Risky

It's Sunday night, April 12, and I’m streaming 3 NBA games at the same time. I decided to bet $10 on the Magic, Kings, and Pelicans to all win, and I’m looking at a potential return of over $435! Small stakes can lead to giant returns, that’s the beauty of parlays. However, the risk is also compounded. The implied probability of picking the winner in those three NBA games was only 2.29%!

Last updated: 04-16-2026published: 04-16-2026

Chad Nagel

Sports Betting & Casino Editor

Fact checked by:

Bruce Douglas

Sports Betting Writer

7 minread7 minutes read

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Parlay Betting Explained

Table of Contents

Keep reading as I break down what makes parlays tick and how to compile sharp tickets at trusted sports betting sites and avoid mistakes that are bankroll killers!

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What Is a Parlay Bet?

A parlay is a wager that combines two or more individual selections into one bet. Every leg must win for the parlay to pay out. If you miss one, the entire ticket loses, regardless of how many other legs hit.

For example, after reading the latest betting tips and predictions at SportsBoom, I’ve been thinking about backing the Rangers, Flyers, and Red Wings all to win their next NHL games on Monday, April 13.

To calculate potential returns for a parlay, you convert the American odds to decimal odds, then multiply each of the odds together, and finally multiply the combined odds by your stake.
So the potential return for my parlay is 1.9091 x 1.9524 x 2.65 x $20 = $197.55.

You can also calculate the chance of me winning according to the sportsbook by dividing 1 by the combined odds. So, based on the combined odds of 9.877, BetMGM, a leading NBA betting site, is giving me a 10.12% shot at winning big.

On December 6, a lucky bettor constructed a 20-leg parlay and won $344,092 from a $1 stake! (Source: Hard Rock Bet)

How to Make a Parlay Bet

If you’re simply adding teams you think are going to win to your ticket and moving around selections until you land on a juicy potential payout, you’re destined to fail. To make successful parlays, focus on:

+EV Stack

Each leg of a parlay either increases the house edge or your edge, if you possess one. You should only add parlay legs when you have a 5% edge on the sportsbook.

To calculate whether you have an edge, you need to analyze the stats. So let’s say you’re predicting the winner of a Hawks (+175) vs Knicks (-210), you would look at Net Rating, Turnover %, ORtg, and DRtg for both sides.

Let’s say the Knicks have a +4 net rating, and each extra net rating is worth 3% in increased win probability from a 50% baseline, so you’re giving the Knicks a 62% chance of winning (50% + 4 x 3%). Then you compare your prediction to the sportsbook’s implied probability, which at -210 is 67.74%. As you can see, it’s higher than your number, and therefore, you wouldn't add this selection to your parlay.

Exploit Odds Boosts

Parlays are extremely profitable for sportsbooks; that’s why they’re willing to incentivize you to create them by enhancing odds through boosts. An easy way to determine if a parlay with a boost is +EV is to take the odds for singles from Pinnacle (their lines are very close to true probability), combine them, and if they’re 10%+ lower than what DraftKings or FanDuel are offering with a boost, take the bet.

Strategic Hedging on the Final Leg

You can reduce your risk and guarantee profit while your parlay is still live by taking advantage of early cashout or manually hedging your wager. And if you think skipping that step doesn’t hurt, just ask Drew Hirschman.

In June 2025, he turned $13 into a potential $270,761 payday, already hitting three legs with only the Oklahoma City Thunder and Edmonton Oilers left. With both finals tied 2-2, a cashout of over $107K was on the table. Unfortunately for him, he let it ride, and the Florida Panthers won the Stanley Cup, causing the entire bet to collapse.

Parlay Types in US Sports Betting

There are two main types of parlays in the US: standard and same-game, which feature different risk and return profiles.

Standard Parlay

With a standard parlay at trusted NFL betting sites, you can select outcomes from two or more separate games across any sport, league, or bet type. Because the events are independent of one another, the sportsbook simply multiplies the decimal odds of each leg to calculate the parlay price.

So if you bet $100 on over 216.5 points on Hawks at Knicks (-115), over 218.5 on Raptors at Cavs (-110), and over 220.5 on Magic at 76ers (-110), the combined odds are +581, and your payout is $681.39.

Same-Game Parlay (SGP)

The SGP bundles multiple outcomes from a single game into one bet, such as Raptors to win, Ingram over 20.5 points, and Barnes over 6.5 assists.

If Toronto is going to win, then Barnes and Ingram are likely going to have standout performances, which makes these bets positively correlated. To account for this correlation, sportsbooks offer reduced odds.

For example, the standard parlay odds for those 3 selections are +723.64 (+230, -150, -201), that’s 38% higher than what DraftKings is offering for its SGP. Due to the massive correlation tax, I avoid same-game parlays.

Best Sports for Parlay Betting (US Market)

Based on my experience, parlays work across all sports but are particularly effective for these leagues and bet types:

Sport	Best Parlay Markets	Volatility	Risk Level
NFL	Spreads, totals, QB/WR props	Moderate	Medium
NBA	Player props, totals, team totals	High	Medium-High
MLB	Moneylines, run lines, first-5 totals	Low-Moderate	Medium
NHL	Puck line, totals, period lines	Moderate	Medium
UFC	Fight winners, method of victory props	Very High	High
NCAA Football	Spreads (large favorites), totals	High	Medium-High

Common Parlay Betting Mistakes

Parlays at NBA and MLS sportsbooks are fraught with danger due to their high vig and low implied probability. Don’t take on even more risk by making these errors:

Overloading legs - Adding 6, 8, or 10 legs causes the potential payout to skyrocket, but every extra leg sharply decreases your implied probability while adding an extra 5%+ vig. I recommend sticking to a maximum of 4 selections per ticket.
Focusing on SGPs - SGPs are not only riskier than standard parlays but also feature significantly lower returns. Sportsbooks are free to make up the odds and deduct payouts as they see fit based on the correlation tax. There’s a reason why DraftKigns and FanDuel market them so extensively!
Ignoring line shopping - Not all sportsbooks price the same game identically. A leg priced at -110 on DraftKings might be -105 on Bet365. Across a multi-leg parlay, taking the best available price on each leg can significantly improve your combined odds.

Conclusion

Parlays account for over 70% of online sportsbooks’ revenue, and that’s no accident. With an average vig of around 24%, parlays are often not worth the risk. However, if you use boosts, shop the best lines, and only include 2-4 legs with +EV odds, they can prove fruitful!

FAQs

What is a parlay bet?

A parlay combines two or more individual wagers into a single bet, and all legs must win for the parlay to pay out. The reward for this all-or-nothing structure is compounded odds: a three-team parlay at -110 per leg pays approximately +596, compared to winning all three separately for around +273 combined profit.

How do parlays work in the US?

US sportsbooks convert each leg's American odds to decimal format and multiply them together to calculate the parlay price. A $100 bet on two -110 legs (1.91 x 1.91 = 3.65) would pay approximately +264, or $364 total.

Are parlays worth it?

For most bettors, parlays are negative expected value due to compounding vig. For example, a four-leg parlay at -110 per leg carries roughly a 17% total house edge vs. 4.5% on a straight bet.

What is a same-game parlay?

A same-game parlay (SGP) combines multiple outcomes from one game, for example, Patrick Mahomes over 285 passing yards + Chiefs -6.5 + game over 49.5. SGPs carry 15-25% hidden vig because sportsbooks discount the odds for correlated outcomes.

Why do parlays lose so often?

Probability multiplies across legs. Three bets each with a 52% win rate combine to a 14% parlay win rate (0.52³). The sportsbook then pays slightly less than that mathematical probability. For example, New Jersey sportsbooks held 19.9% on parlays in January 2024, nearly five times the hold on straight -110 wagers.

Chad NagelSports Betting & Casino Editor

Chad Nagel is a passionate sports fanatic who has worked in the sports and betting industry for over a decade. He spent most of his career as an editor-in-chief for Soccer Betting News, South Africa’s leading soccer betting newspaper, owned by Hollywoodbets. His articles have also featured in some of the most respected sports media platforms in the world, such as SPORTbible, Sports Illustrated, Combat Sports UK, and many others.