Its an age old question that is not easily answered. Parlays are a high risk, high reward style of betting so they cannot be compared directly to other forms of betting. To make an effective judgement on the worth of parlay betting, you first need to understand how to use them effectively. When employed at the right time and in the right way they are a powerful betting tool. When used indiscriminately, they are ineffective and expensive to a bettors bottom line.
Our Stance
Is a Parlay Bet a Good Bet? Yes, if used correctly they can be an effective way for a bettor to stake smaller than usual but access a potentially large payout through the power of compounding. Often Parlays are misunderstood, used incorrectly and leave the bettor exposed to undervalued odds when compared to the actually probability of winning.
Why Do Some People Think Parlays Are Bad?
There are a number of reasons why bettors think they are bad. Here are two of the most common reasons:
The Wrong Bet Types Are Used
The most common belief is that Parlay offer a negative expected value. That is; the final parlay odds offered are usually less than the true probability of all the legs winning.
This is of course the case if you link together parlay legs that are in their own right poor value. The multiplier effect of parlays means that a poor ‘buy’ on a bet is carried through and magnified as it is combined with other legs.
There are two particular bet types that regularly offer negative expected value to bettors. These are the point spread and over/under totals betting. Accepting odds of -110 on a 50/50 outcome is a risky past time. Nevertheless bettors are fascinated with these types of bets, so much so that they then link them together into parlays.
I mean think about it for a second. Willingly accepting -110 on a 50/50 outcome means you must win at 52.38% to break even. Blind Freddy can see that is a supremely tough ask. I still bet those markets, but I do so with the knowledge that if I don’t see an edge on the number (Handicap or Points Total) then really I am just flipping a coin. If that’s what I am doing, then I don’t like my chances of winning 52.38% of the time.
Now armed with that knowledge go and throw those bet types into a parlay and you are creating a mountain to overcome just to break even.
The Wrong Staking Strategy is Used
Parlays are a different breed and require a different staking strategy. The Risk/Reward ratio can vary greatly from parlay to parlay depending on the included legs. Bettors who have a poor grasp on bet sizing will typically over bet on parlays, enticed by the carrot of a large bankroll boosting payout. Sadly this critical error can lead bettors on the short path to bust city.
The stories of going bust lead bettors to think Parlays betting is the issue. In actual fact the staking strategy is to blame but self reflection is hard, so that gets overlooked.
The Bottom Line: Parlays are not bad. Bettors are bad at using them. Learn how to use them effectively and they suddenly become a key piece of any bettors repertoire. After all sharp bettors who make a living from betting still use parlays. They just have the know how.
If Parlays are Bad, Then Why Are They Popular?
1 ) Undeniably Fun
There is no doubting Parlays are a lot of fun. Action is spread across a number of events so bettors feel invested in many outcomes. A well timed parlay can turn a Sunday afternoon NFL slate into an 8 hour long betting ride.
Parlays also offer a roller coaster ride of emotions. Those bettors with a love (maybe even addiction) to the extreme emotions that come with betting on sport, go looking for opportunities to get it all on the line to win big. Parlays provide that in a fun and entertaining way.
What can be more fun than having the last leg of a parlay live and being able to watch every play unfold. The big plays feel so much bigger and small moments become parlay altering events.
2) Lure of a Big Payout
Big payouts truly are the stuff of dreams. I mean why else are lotteries so popular. It has everything to do with the big prize and nothing at all to do with the probability of winning. After all if you looked closely at the true probability of your numbers coming up you might think again about buying a ticket in the lottery.
The lottery has some similarities with parlay betting (although done right you can certainly push the odds in your favor). The chance at hitting double figure times returns, or higher, can be enough to get a bettor to throw that money down.
To a bettor who is having a tough run, a big payout can be the thing that gets their bankroll back on track. The magic bullet, the panacea, the secret sauce. Parlays appear to provide bettors with an opportunity to chase losses without staking above the norm. Of course more often than not the execution leaves the bettor short handed anyway.
A poorly executed parlay makes it more like a hail mary than a strategy, again much like the lottery. Nevertheless the lure big money is the drawcard.
3) Small Stakes Equals Low Entry Level
The ability to get action on a parlay for a relatively small stake (eg a quarter of a unit) but not sacrifice the chance of a big return provides bettors with a cheap entry point to this form of betting.
The small stake entry point equates to a low risk high reward scenario. Something all bettors are constantly on the looking for.
For a bettor who simply can’t afford a lavish bankroll parlays are the way to get action on many events affordably. For instance across 4 college football games at the one time when the bankroll simply doesn’t have the capacity to cover those four games individually.
Small stakes makes parlays the bet type of the people!
4) Parlays are Actively Encouraged by Sportsbooks
Sportsbooks are in the business of making money and lets be honest, they are very good at it. They know that parlay betting is misunderstood and misused by the general betting public. Therefore they actively encourage bettors to invest in this bet type.
There are constantly promotions available on parlay betting at virtually every online or mobile sportsbook. In fact they are usually very generous promotions that I recommend you make the most of.
Promoting parlays is a way for sportsbooks to give bettors experience with these kinds of bets so that they continue to bet them when the promotions are not offered. They are a way to lure recreational bettors and bettors who are true ‘every now and then’ type clients to bet them.
Active promotion of parlays has the desired effect, if makes them a high traffic bet type.
5) They Make a Good Story
This my friends is almost the biggest reason why parlays are so popular. At the end of the day a bettor who lands a big one has bragging rights for days. They have a war story to tell that points to their ‘expertise’ as a bettor.
I mean, surely if someone is talking about how they pulled of a 5 leg parlay on last night’s games then they must be a master bettor right? Well probably not but it makes a great story!
Come Super Bowl or NBA Championship time the media loves to find a fairytale story of someone needing the big game to fall their way as the last leg of some life changing parlay. It creates some hype and it certainly encourages average Joe to get out there and invest in a parlay or five of his own.
Big parlay wins are also a huge talking point on social media like Reddit or Twitter. Social media is an ego driven platform at the best of times so pulling of a huge parlay is great ammunition for some ‘look at me’ posts. This alone makes them popular.
Heck, even a bad beat parlay makes a good story. A story of heartbreak is a ticket to the sports betting club. A battle scar to show that you have been to the front line and earned your stripes. Much like falling of your horse makes you a bona fide member of the pony club, an unbelievable parlay bad beat is a story worth telling.
The Parlay Mistake To Avoid
There is one huge error that many bettors unknowingly make when betting parlays. Check out this video and avoid making that error yourself!
How Can You Make Parlays Work?
Parlays can be an effective style of betting and you can make money betting them. If you are ready to turn your parlay betting into one of the great strengths of your betting then you MUST read this article:
The Game Starts Now!
Betting parlays is not some sin for which you need to repent. Like all betting styles once you get your head around how to bet them effectively they can be a positive addition to your betting repertoire. Check them out just be smart about the way you do it.
Good Luck and as always Bet Responsibly!
