What is Parlay Betting? | Profitable Betting Strategy!

Summary

This video explains the concept of parlay betting, a method where multiple individual bets are combined into one, offering a higher payout but significantly increased risk. Using examples of sports bets and coin flips, the video illustrates how parlay bets work, their potential payout, and the mathematics behind expected value (EV). While parlays can offer high rewards, the video warns of the risks and suggests focusing on positive EV bets for better odds. It also introduces a tool called OddsJam to find favorable betting opportunities and optimize parlay strategies.

Takeaways

• 💰 Parlay betting, also known as multi-betting or accumulator betting, combines two or more bets into a single bet for higher potential payouts.
• 🏀 In a parlay, each bet (or leg) must win for the whole parlay to win. If one leg fails, the entire bet is lost.
• 📊 The odds for a parlay are calculated by multiplying the odds of each individual leg. This leads to higher potential payouts but a lower chance of winning.
• ⚠️ Parlays are popular for offering high payouts from small stakes, but they come with a much higher risk due to the all-or-nothing nature.
• 📉 Sportsbooks favor parlays because most bettors lose, making it profitable for the sportsbooks.
• ✅ To profit from parlays, bettors need to focus on placing positive EV (expected value) bets, where the odds given are better than the fair odds.
• 🔢 A hypothetical example shows that placing a single bet can have a lower expected value (EV) compared to a parlay bet with positive EV legs.
• 📈 Using tools like OddsJam can help bettors identify positive EV opportunities across various sportsbooks.
• 🎯 It's crucial to ensure all legs of a parlay bet offer positive EV; otherwise, bettors risk losing more money in the long run.
• 📊 Correlated events in same-game parlays complicate the calculation of fair odds, making it riskier and harder to strategize effectively.

Q & A

What is a parlay bet?

A parlay bet, also known as a multi or accumulator bet in other countries, is a type of sports bet where you combine two or more individual bets into a single bet. Each individual bet is known as a 'leg,' and all legs must win for the parlay bet to win.

How are the odds of a parlay bet calculated?

The odds of a parlay bet are calculated by multiplying the odds of each individual bet (leg). For example, if three basketball games have odds of 2.0, 1.75, and 1.8, the combined odds for a parlay would be 2.0 x 1.75 x 1.8 = 6.3.

Why do sportsbooks promote parlay betting?

Sportsbooks promote parlay betting because although the payouts can be high if you win, the chances of winning are significantly lower due to the requirement that all legs must win. This makes it profitable for sportsbooks, as most parlay bets are lost.

What are the risks of parlay betting?

The primary risk of parlay betting is that if just one leg of the bet loses, the entire parlay is lost, regardless of how many other legs win. This increases the likelihood of losing compared to placing individual bets.

What is positive EV in sports betting?

Positive EV (Expected Value) in sports betting refers to situations where the odds given to you by the sportsbook are higher than the 'fair' odds, meaning that over time, you would expect to make a profit by consistently betting on these odds.

How can you use positive EV in parlay betting?

To use positive EV in parlay betting, you need to ensure that each leg of the parlay has positive expected value. This means the odds offered by the sportsbook must be better than the fair odds for each event. If each leg is positive EV, you can increase the overall expected value of the parlay.

Why is it important to check the fair odds in parlay betting?

It's important to check the fair odds because sportsbooks often offer odds that are worse than the fair odds, especially in parlay bets. If the odds are worse than fair, you’re more likely to lose in the long term. Using positive EV legs ensures that you are getting better value for your bets.

What example is used to explain the parlay betting concept in the script?

The script uses the example of betting on three basketball games, with decimal odds of 2.0, 1.75, and 1.8, to explain how combining the odds into a parlay works. By multiplying these odds, the combined odds are 6.3, which gives a higher payout if all teams win.

What is the significance of the coin flip example in the script?

The coin flip example demonstrates how the expected value (EV) is calculated for a parlay bet. It shows that even though the chance of winning the parlay is lower (12.5% for three heads), the expected value can be higher due to compounding odds, provided each leg is positive EV.

What are same-game parlays, and why are they more difficult to calculate?

Same-game parlays combine different events within the same game, such as a team winning and a specific player scoring a certain number of points. These are harder to calculate because of correlations between events, making it challenging to determine fair odds and an effective betting strategy.