Definition of Parlay

What is a "parlay" in the world of sports betting? What is the definition of the term "parlay"?

In sports betting, a "parlay" occurs when you need two or more outcomes to take place in order for your bet to win.

In a typical bet, you may wager that Seattle is going to beat Denver in the Super Bowl straight up. If Seattle does beat Denver, you will win your bet.

However, a parlay might look like this:

Seattle to beat Denver
Vancouver Canucks to beat New York Rangers
Houston Rockets to beat Los Angeles Lakers

In order to win this bet, the Seahawks must beat the Broncos, the Canucks must beat the Rangers AND the Rockets must beat the Lakers. If any one of these outcomes doesn't take place, the parlay will lose.

Let's say that the odds for each game look like this:

Seattle to Win, 2.95
Vancouver to Win, 2.10
Houston to Win, 2.05

Now, let's say that you wish to wager $10 on this parlay. Your potential return would be:

2.95 * 2.10 * 2.05 * 10

=

$127

If the Seahawks, Canucks and Rockets all win, you will walk away with $127. If the Seahawks and Canucks win but the Rockets lose, you will walk away with nothing.