Over the past few days we’ve discussed the importance of flat betting, betting to risk instead of betting to win and limiting our numbers of bets each day. Now it’s time to discuss one of the most critical aspects of bankroll management: Avoiding parlays.
The parlay is one of the most popular bet types for new or casual sports bettors. This is when a bettor makes multiple wagers (at least two) and ties them together into the same bet. Parlays can involve multiple bets in the same sport or across multiple sports. If any of the bets in the parlay lose, the entire parlays loses. However, if all of the bets in the parlay win, the bettor enjoys a massive one-time payout.
To put this in perspective, let’s say a bettor wants to risk $100 each on 3 MLB moneyline bets. All three teams are underdogs: the Pittsburgh Pirates + 150, the Texas Rangers + 100 and the Cincinnati Reds + 200. If you bet $100 on all three teams individually and all three won, you would win $450 total, plus get the $100 back that you risked on each team.
But if you bet $100 on all three teams in a 3-team parlay and all three teams won, you would win a whopping $1,500, plus get the $100 you risked back.
Sounds pretty awesome, right?
This is precisely why Average Joes and recreational bettors love parlays.