Parlay Betting Strategy
Many bettors out there have raked in a significant amount of money in profit on parlays. Instead of betting on one game or sports event in sports betting, there simply combine these selections into one bet. This type of bet is called parlay. Its implication is greater payout provided all selection wins, and bettor also run less risk. Two prominent types of parlays are Round Robin and Teaser. This article explains everything you need to know parlay and how to conveniently increase your bankroll with it.
- A Parlay bet is simply a combination bet
- All selections must win to make profit
- Parlay payout reduces when selection pushes
Parlay Betting Strategy Explained
Let’s go old-school. What is a Parlay? A Parlay can be defined as any kind of bet that is placed such that one bet is made up of more than one bets, that is, there must be at least two selections to in total and that must win. The logic of a parlay is to maximize profits on bet by selecting more than one outcome in single bet. This means that we are combining bets. Ordinally, making predictions on three outcomes of three separate games or sports events will mean that bettor must place different three wager. However, a player can decide to spice things up and increasing his potential from winning but placing or combining all these three predictions on outcome (bets) together in one bet.
The implication this is that bettor gets to pay less compared if he had placed such bets separately. Additionally, assuming all the three bets came back under the category of winning, the sum of their total will be nothing compared to the payout the bettor would get should these three bets be placed in a 3-team parlay, provided all selection wins of course.
Example of Parlay
Let’s assume you’ve to grace your weekend by indulging in sports betting. Four offers interest you: Patriots +3, Colts -7, Dolphins +2.5, and Jets -4. Remember our discuss on sports betting money management: Know Your Betting Budget; so, let’s say your betting budget is rather small, just $100. If you were to place wager of these bets individually, regardless of the bet odds, the simple math will be you placing $25 on each selection and hope to win them all. You will be looking to win $22.73 on your $25 bet.
On your free time, you’ve read about parlay and so you decided to give it a try. In your quest of getting the best return on your $100 bet amount, you decided to go with a 4-team parlay. Now, using this parlay betting strategy, and with the right amount of lucky, or research, with your 4-team parlay bet, you stand the chance to win nothing less than $1,000. All you just need is that all the four selections win. It’s important to point something out here, however.
If any of your selection that makes up a parlay bet pushes, such selection that pushed is simply removed from your parlay bet and payout adjust, like the selection was never there in the first place. More importantly, if any of your selection that makes up your parlay bet loses, then you lose the whole bet altogether. If they all win, you are in for a big treat, as what you’ll make in profit now depends on how much place in parlay wager.
One more live example of one lucky bettor that won a 3-team parlay at 5Dimes:
|$100||Win||9-20-14 4:00pm College Football 307 Indiana +415* vs …|
|$5,905.93||Win||9-20-14 12:00pm College Football 313 Iowa +240* vs …|
|$6,005.93||Win||9-20-14 12:00pm College Football 361 Georgia Tech +243 vs …|
This tough lucky dude just made a whooping $5,905.63 on a $100, all thanks to a 3-team parlay.
Parlay Bets are not always Sucker Bets
Many bettors are of the option that parlay bets are sucker bets when they bring odds into perspective. The reason why a bettor will make this assumption or conclusion is because he has no true indepth knowledge of how to use parlay. Let’s help with that. Two things you need to know in this aspect are fixed odds and true odds.
Fixed Odds: In Las Vegas, you will come across the following parlay odds:
|Parlay||Odds||Parlay of 2 teams||2.6 to 1||Parlay of 3 teams||6 to 1||Parlay of 4 teams||10 to 1||Parlay of 5 teams||20 to 1||Parlay of 6 teams||40 to 1||Parlay of 7 teams||80 to 1||Parlay of 8 teams||150 to 1|
Please note that some online sports betting sites start their parlay offering from three teams parlay upwards. Key points to know about fixed odds in parlay betting:
- They are based on a 50-50 wagering proposition.
- Supposing a spread has been listed as Team A -7 – Team B +7, this is a clear 50-50 proposition.
- Supposing again that a spread has been listed as Team A -7 -105 – Team B +7 -115, then the 50-50 wagering proposition no longer applies, and bookmakers and online sports betting sites are bound to calculate parlay payout using true odds.
- The table below shows exactly bettors sometimes refer to parlay bets as sucker bet. In the table we compare you placing eight (8) consecutive bets on nfl games (not parlay and the assumption is winning all – both for all individual bets and the parlay example used later) with an equivalent parlay of eight (8) teams.
- The table shows that you get odds of 173.15 to 1 on your nfl bets compared to a 150 to 1 payout that you would get supposing to placed it using a parlay of 8 teams.
|Week||Bet Stat||Outcome||Profit||Bankroll Bal.||1||$1.00 to win $0.91||Win||$0.91||$1.91||2||$1.091 to win $1.74||Win||$2.65||$3.65||3||$3.65 to win $3.32||Win||$5.97||$6.97||4||$6.97 to win $6.34||Win||$12.31||$13.31||5||$13.31 to win $12.10||Win||$24.41||$25.41||6||$25.41 to win $23.10||Win||$46.51||$47.51||7||$47.51 to win $43.19||Win||$89.70||$90.70||8||$90.70 to win $82.45||Win||$172.15||$173.15|
For the table above, the following assumption were used:
- Your betting budget was $1;
- You win all your individual bets, eight consecutive times;
- Throughout the betting lifecycle, you used a Fixed Bet Staking Strategy.
True Odds: First you need to know how to calculate true odds as its calculation is different from that of fixed odds. True odds are calculated using the following steps:
- Convert each bet into a multiplier.
- To achieve this, divide the winning ticket return amount by the actual amount risked. E.g. a $110 stake on -110 would return $210. That gives . The Multiplier here is 1.91.
- Now, compared to a parlay of 8 teams that gives 150 to 1 payout using fixed odds, including one selection that is not priced the same as the remaining selections in your parlay of 8 teams will give a 173.41 to 1 payout instead of the 150 to 1 payout using fixed odds.
- For example, you decided to combine 7 picks of -110 and one selection of -115, the true odds calculation will look like this:
Why Bettors fancy Parlay Betting Strategy
Having discovered this, you will wonder that how then how one makes the best use of parlay given that it’s massive payout advantage that comes with it. Here is the simple logic:
- For every selection on your parlay bet that uses a 50-50 proposition, bookmakers and online sports betting sites will always use fixed odds to calculate payout. From the table above, we’ve seen that bettors who plan to make profit using parlay betting strategy really want to stay away from getting their parlay payout calculated using fixed odds.
- However, for every selection that does not use a 50-50 proposition, bookmakers and online sports betting sites calculate parlay payout using true odds.
- The way forward then is to make sure you include in your parlay bet picks a selection that is priced differently, as we’ve shown in the previous section.
Want to get more relevant Information?
Now, you have seen that bettors who really don’t under how parlays work or the nitty-gritty of how this betting strategy works in sports betting will always, at best, describe parlays as sucker bets. For more useful, free indepth information and educative content on parlay betting strategies and other betting strategies you can apply to your sports betting and NFL games, visit our sports betting comparison to always keep ahead in your sports betting affairs.