What it is
A parlay is a type of sports wager where a bettor combines multiple individual bets, or "legs," into one single bet. For the parlay to be successful and for the bettor to collect winnings, every single selection within the parlay must win. The appeal of parlays lies in their potential for significantly higher payouts compared to individual bets, as the odds for each leg are multiplied together.
Parlays are popular among bettors seeking larger payouts from smaller stakes, though they carry higher risk due to the "all or nothing" requirement. Sportsbooks often promote parlays with various incentives, as the house edge (vig) is typically higher on these types of bets. Investors in sports betting companies monitor parlay activity as it contributes significantly to sportsbook revenue due to the increased hold percentage for the operator.
Why it matters
Parlays offer high payouts but higher risk for bettors, generating substantial revenue for sportsbooks due to their increased house edge.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice