Parlay Odds Explained
Parlays can turn small stakes into big payouts — but the math is brutal. Understanding how parlay odds are built helps you avoid common traps and price your tickets correctly.
What is a parlay?
A parlay combines two or more selections into a single bet. To win, every selection must win.
How parlay odds are calculated
The clean way is to use decimal odds and multiply:
Total Decimal = d1 × d2 × d3 …
Example: 2-leg parlay with 1.91 and 1.91:
1.91 × 1.91 = 3.65 (roughly +265 American)
Why sportsbooks love parlays
- More variance (most tickets lose)
- Many bettors underestimate how quickly probability drops
- Pricing can be less favorable than “true” multiplication in some markets
Probability drops fast
Even if each leg is a 55% winner:
- 2 legs: 0.55 × 0.55 = 30.25%
- 3 legs: 16.64%
- 4 legs: 9.15%
When a parlay can make sense
- You have an edge on each leg (positive EV)
- Legs are priced correctly and not “boosted” with hidden juice
- You’re using parlays as small-stake upside, not a bankroll plan
FAQ
Do parlays pay less than they should?
Sometimes. True parlay odds are based on multiplying fair odds, but books may price certain parlays less favorably.
Are same-game parlays harder to price?
Yes. Legs can be correlated, so sportsbooks adjust payouts to account for that correlation.
What’s the biggest beginner mistake with parlays?
Thinking big payouts mean good value. Value depends on probability vs price, not payout size.
Related next steps
- Gambling Glossary (quick definitions)
- Gambling Basics 101 (start here)
- Responsible Gambling (play safe)