As parlays rise in popularity, moderation remains key

Editor’s note: Birches Health is a leading national provider of Responsible Gaming resources and Problem Gambling treatment, offering specialized care from the comfort of home, covered by insurance and state government funding.

One of the most notable trends across the sports betting industry in recent years has been the eye-popping increase in the number of parlays being bet. In 2023 alone, parlays accounted for 70% of all NFL and NBA bets placed on FanDuel, according to parent company Flutter Entertainment. And since they began offering sports betting in the U.S. in 2019, the volume of parlays bet has increased by 65%.

Sportsbooks now advertise parlays consistently, creating special promos and boosts around them and offering pre-built versions from celebrity partners. They also highlight it widely when a bettor turns a small, multi-leg parlay wager into a massive win, reminiscent of how the lottery and Publishers Clearing House promote their overnight-millionaire jackpot winners.

The appeal of risking a little to potentially win a lot is undeniable. It’s the same reason why millions of Americans are drawn to the lottery, tapping into the feeling that despite the astronomical odds, you just might be one of the lucky ones who wins big. It’s also why the many-leg parlays that lots of bettors place today are sometimes called “lottery ticket parlays,” since their odds can approach similar levels while also holding the potential of turning a few bucks into hundreds of thousands or more.

But there’s of course a reason why sportsbooks love promoting parlays. The built-in house advantage and subsequent “hold” from parlay wagers is significantly higher than with single straight bets. In New Jersey during September 2024, parlays accounted for 72.5% of sportsbooks’ gross revenue. But even more staggering, their hold percentage on parlays was 24.2%, versus 4.4% for other bet types.

Why it’s wise to make parlay bets in moderation

Simply put, it is incredibly difficult to turn a profit long-term when betting parlays. Parlay betting is so hard because of the significant house edge (odds given vs true odds) involved. In general, the odds offered by sportsbooks do not reflect the true probability of a selected outcome. They build in a margin to ensure that they are statistically likely to profit, regardless of the outcome.

For example, sportsbooks traditionally price a standard straight bet that has true odds of 50% at -110 on each side, meaning you need to risk $110 for every $100 you want to win. In other words, you need to bet 10% more than the amount you could win. That percentage is known as the “vig” (vigorish) or “juice” and is why gambling operators are such profitable companies. The odds are skewed strongly in their favor.

With parlays, this house edge compounds quickly the more legs you add. That means the “expected value” for the bettor decreases significantly, and conversely the sportsbook’s chances of making a profit off the bet(s) increase greatly.

Therefore, whether you like betting parlays for golf (with matchups, make/miss cut picks, top 5/10/20 finishes or any other bet type with multiple legs within it) or any other sport, it’s advisable to do so in moderation. The idea of risking a little to win a large amount can be difficult for some to avoid completely, so if you are going to bet parlays, diversifying your betting portfolio with other wager types is a wiser approach. It’s already difficult enough to overcome the typical house edge and consistently win straight bets over time, so why deflate your chances further with a multitude of parlays? Given how much of an additional advantage sportsbooks have with them, you’re even less likely to turn a profit long-term.

Specialized problem gambling treatment

For some, betting parlays can quickly result in quickly eroding a bankroll, risking more and at times ending up in a difficult financial situation. If you or someone you know has been struggling to keep sports gambling in check – whether with parlays or another bet type – there are specialized support resources available.

Birches Health has a nationwide team of certified, specially trained counselors with decades of combined experience treating gambling addiction. They will create a personalized care plan tailored to fit your needs, with most clients’ treatment costs covered by insurance. Birches Health ensures confidentiality, security and the convenience of teletherapy from the comfort of home.

To connect with Birches, you can simply click here, call (833) 483-3838 or email help@bircheshealth.com.