What is a parlay bet and why are parlays popular?

The news that Polymarket and Kalshi are launching a parlay bet option, even though they technically do not call it that, has raised questions as to what a parlay bet actually is.

But even without prediction market platforms, parlays are already accounting for roughly 40% of all sports betting handle, which makes them an even more important mechanic to understand.

Some sports may be pulling 70% of the action from parlays, based on the results of individual sportsbooks.

Today, Casino Guru News takes a closer look at how parlays work and why these multi-pick selections are harder to win, even though the payouts tend to be higher potential payouts.

So, what is a parlay?

Parlays are best described as "multiple bets" combined into one. This means that, as part of the same "bet," you will choose multiple outcomes, or rather, make selections.

Each selection in the parlay is called a "leg," and the number of such selections will depend on the sportsbook you are using. Some allow more, and some fewer.

In order to win this type of bet, you will have to win every individual leg before you can secure the total payout from the parlay itself.

Even though more legs means a higher chance of not getting paid (i.e., one or more of the legs failed to deliver), the potential of a higher payout with a relatively small commitment is what makes these markets incredibly popular.

How does a parlay work?

Next, let’s dig a little deeper into how a parlay works. First things first, we are going to take a three-leg parlay, meaning that we are going to bet on three individual outcomes, and that all three must win to get paid for the parlay.

At this point, it is important to note that people are betting on markets already offered on the same sportsbook, but are choosing to combine them into a single parlay.

This way, the probability of winning actually decreases - i.e. you getting all three outcomes (as is our case) compared to getting outcomes separately. This still depends on the odds, but it is how it works. Because a person betting this way is carrying more risk, the payouts are also higher.

For a hypothetical example, imagine a three-leg parlay on the 2026 FIFA World Cup final. You could back "Spain to Defeat Argentina", which is our first leg, along with "Lionel Messi to Score," which is our second leg. Now, for the third leg, we can still bet on the same event, i.e., the 2026 World Cup final, and pick something such as "Spain to Score."

Then again, there is no obligation, and we could just as well bet on Formula 1 or table tennis. The parlay will just be resolved whenever these events conclude, simple as that.

What types of parlays are there?

One other thing you need to know is that there are different types of parlays you may use.

There are several types of commonly bet-on parlays, although some sportsbooks may expand on what options are available even further.

• Same Game Parlays: Same game parlays are a type of parlay where players may bet on multiple outcomes, but only on events in the same game. For example, you could bet on who would score, how many goals there would be by a certain minute in the game, and so on.
• Multi Game Parlays: Multi game parlays are what we usually understand when we talk about parlays. These are the regular type of parlays where you bet on multiple outcomes from different games and wait for all legs to be resolved before you can see if you have won or lost your wager.
• Player Prop Parlays: Another popular form of parlay involves player props. Here, you do not simply pick multiple selections; you also focus on some very specific outcomes tied to an athlete’s performance - how many points they are going to score, when they are going to score, whether they will score over or under a certain point count, and so on.

Can I place parlays at prediction markets?

Yes, but there is one very important caveat. Parlays are not recognized as parlays directly at platforms such as Kalshi or Polymarket. Polymarket specifically calls them "Combinatoric AthleticOutcome Contracts," and Kalshi uses the "Combo" branding.

These parlay-adjacent trading options (which work in the same way as sports betting parlays) are also starting to gain traction with traders, who are keen to explore them. They are going to be permanently embedded into what prediction market platforms offer, provided that there is no legal decision prohibiting their use.

Are parlays actually worth it?

This is another interesting point and one well worth addressing overall. The question of whether parlays are worth it is a highly subjective one, but the potential for a big payout relative to money staked is most certainly one of the key drivers of interest in this segment.

However, there is a lower probability of winning, because all it takes for a parlay to actually fail is for a single leg to go bust. This instantly kills your entire ticket, which is why parlays can also feel very anti-climactic.

Overall, parlays have their strengths and considerable drawbacks, and they fascinate sports bettors, allowing them ways to test their knowledge of sports and look for new angles to combine multiple legs into a potentially high-paying ticket.

Parlay bets FAQs

How many bets do you need to form a parlay?

You need a minimum of two selections to form a parlay bet at most sportsbooks. The maximum number of legs varies by sportsbook or platform.

Kalshi’s combos, for example, may allow 30 or more legs, while most sportsbooks tend to cap them at 10 or 15. A caveat here is that the more bets you place, the more likely it is that you will lose.

Will my parlay lose if only one leg loses?

Yes, this is how parlays work. Although they are very tempting because of the bigger-than-usual payout, it would only take a single leg to lose for the entire parlay to lose. This can often feel anti-climactic for many players, especially new bettors.

Are parlays riskier than placing a straight bet?

Yes, placing a parlay is riskier than straight betting. You will need to correctly guess two outcomes to win - this is the best-case scenario. Players also choose to bet on more selections most of the time.

Do I need to pay separately for every leg of a parlay?

No, not at all. You place a single wager and combine all the selections. The more selections - or legs - you add, the less likely it becomes that you would win. However, the trade-off is that you would win more with the same amount when you add more legs.

Can I bet on different games using parlays?

Yes, you absolutely can. This is the core idea of parlay bets. You may bet across multiple games and on specific events. Each bet you place is called a leg.

Image credit: Unsplash.com