Sports betting has its own language and much of its vernacular can be very daunting for people new to the arena. Going through the glossary, one term that may be confusing for some people is the concept of "parlay betting." What are parlay bets? And why can they be so popular with people interested in betting on sports?

What is Parlay Betting?

With most types of sports bets, a wager is placed on a single game. The outcome of that single game determines whether or the not the wager is a winning one. These offer standard payouts at expected odds. For betters who are more interested in making a greater profit with a smaller wager, parlay bets can be more lucrative. With parlay betting, a wager is placed across multiple bets in multiple games. Also known as an accumulator, a parlay is only successful if all the bets in the parlay are winners. If just one of the bets is incorrect, the entire parlay bet is considered a loser. The single greatest advantage to parlay betting is the potential for much higher payouts than what a person can expect to receive through standard betting. On the flipside, the chances (or odds) of having a successful parlay are also decidedly lower than they would be with a single bet. A typical parlay involves between three and eight games.

What are the Types of Parlays?

In general, there are two types of parlay bets and these cannot be combined into a single wager. On the one hand are point spread parlays and over/under parlays. These two types of bets can be combined into a parlay bet, allowing wagers to be placed across multiple games. These wagers can be against the point spread or played against the over/under (also known as "totals"). The assumption here is that each individual bet as part of the parlay has a 50-50 chance of being correct. On the other hand are moneyline parlays. Since the payouts for each individual moneyline bet are not the same, and the assumed probability of each moneyline bet being correct is not 50%, moneyline parlays cannot be combined with point spread parlays and over/under parlays. The calculation of the payout for moneyline parlays is also different from the point spread and over/under parlays.

What are Standard Odds and True Odds?

For individual point spread bets, the typical payout is on a 1:1 basis (less a commission for the sports book). However, this payout (and the associated odds) does not carry over perfectly for point spread and over/under parlay bets. Instead, parlay payouts follow a schedule based on standard odds. Standard odds, as defined by the sportsbook, determine the payouts for parlay bets. These will be different from the true odds, which represent the true probability of having a successful parlay bet.

• 3-way parlay: 6-to-1 payout: 7-to-1 true odds
• 4-way parlay: 10-to-1 payout: 15-to-1 true odds
• 5-way parlay: 25-to-1 payout: 31-to-1 true odds
• 6-way parlay: 40-to-1 payout: 63-to-1 true odds
• 7-way parlay: 75-to-1 payout: 127-to-1 true odds
• 8-way parlay: 150-to-1 payout: 255-to-1 true odds

The calculation of payouts for moneyline parlays take on a much more complex mathematical formula. You can preview the estimated payout using this parlay calculator, though the payouts are automatically calculated for wagers placed here on WinTheTrophy.

What Happens with Ties?

Typically, if one of the bets in the parlay is a tie (push), the parlay factor drops down one level. What was a 5-way parlay would then pay as a 4-way parlay should the other four bets be winning bets. If the parlay is dropped to a 2-way or a single bet, the payouts are pushed to 2.6 times the wager and 0.909 times the wager, respectively.