Glossary
Parlay
A parlay is a single bet that combines two or more selections, all of which must win for the parlay to pay. The payout is larger than the individual bets because the odds multiply together, but so does the risk: one losing leg sinks the entire bet.
A parlay ties several bets into one. Each selection is called a leg, and every leg has to win. If a single leg loses, the whole parlay loses.
The appeal is the payout. Because the odds of each leg multiply, a three-leg parlay of modest favorites can pay far more than any one of them alone. The catch is that the chance of hitting shrinks with every leg you add, and the sportsbook's margin compounds across the legs too.
That combination, a big advertised payout sitting on a small real chance, is why parlays are a favorite product of sportsbooks. They can be fun in small, planned amounts, but they are a high-variance bet. Treating a long-shot parlay as a reliable plan is a common way new bettors misjudge risk.
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