Parlay Betting Explained: How Multi-Leg Bets Pay and Why They're Risky
By StakeReferralCode.ca Editorial Team · Updated
A parlay (also called a multi or accumulator) combines two or more selections into a single bet. Every leg must win for the parlay to pay, and the odds of each leg are multiplied together to give the total price. That's why a small stake can show a big potential return, and also why parlays lose far more often than single bets. On top of that, the bookmaker's margin is multiplied too, so the longer the parlay, the more of your expected value you give away.
This guide shows the payout maths step by step, using clearly hypothetical odds, and explains what happens when a leg is voided or pushes.
Parlays in Canada: a short history
Parlays have a long history here. Before Bill C-218 took effect on August 27, 2021, provincial lotteries could only offer parlay-style sports betting, with no single-game bets. Single-event betting is now legal, and both provincial sites and offshore books offer singles and parlays side by side.
If you're considering Stake.com, note that it's not available in Ontario or Alberta. In other provinces it's a legal grey area, since Stake.com is licensed in Curaçao rather than by your province. Check Stake's terms and your province before depositing.
How parlay odds are calculated
Multiply the decimal odds of each leg. The result is the parlay's decimal odds.
- Parlay odds = leg 1 × leg 2 × leg 3 …
- Total return = stake × parlay odds
- Profit = total return − stake
If you use American odds, convert each leg to decimal first. Our guide on how to read betting odds shows the conversions.
Worked example: a three-leg parlay
All odds below are hypothetical and chosen only to make the arithmetic clear.
| Leg | Selection (example) | Decimal odds | Implied probability |
|---|---|---|---|
| 1 | Hockey moneyline | 1.80 | 55.6% |
| 2 | Basketball spread | 1.90 | 52.6% |
| 3 | Soccer total goals | 2.00 | 50.0% |
Step 1: 1.80 × 1.90 = 3.42 Step 2: 3.42 × 2.00 = 6.84
A $10 stake returns $10 × 6.84 = $68.40, which is $58.40 profit.
The parlay's implied probability is 1 ÷ 6.84 = 14.6%. You can also get there by multiplying the leg probabilities: 0.556 × 0.526 × 0.50 ≈ 0.146. In other words, three bets that each look close to a coin flip combine into a bet that, by its own price, loses roughly 85 times in 100.
Why the payout grows so fast
Each extra leg multiplies the odds, so the potential return climbs steeply. The chance of winning falls just as steeply. Here's the effect of stacking legs that are each a true 50/50 shot:
| Legs | Chance all legs win | Fair odds (no margin) | Odds at 1.91 per leg | You're paid vs fair |
|---|---|---|---|---|
| 1 | 50% | 2.00 | 1.91 | 95.5% |
| 2 | 25% | 4.00 | 3.65 | 91.2% |
| 3 | 12.5% | 8.00 | 6.97 | 87.1% |
| 4 | 6.25% | 16.00 | 13.31 | 83.2% |
| 5 | 3.125% | 32.00 | 25.42 | 79.4% |
The 1.91 price is a hypothetical example of a typical-looking two-way line with a margin built in. The pattern is the point: at one leg you're paid about 95.5% of the fair price; at five legs, about 79.4%.
The hidden cost: margins compound
Every single bet carries a margin for the bookmaker. In a parlay, those margins multiply along with the odds. Using the table above:
- One leg at 1.91 instead of 2.00 costs you about 4.5% of the fair payout.
- Five legs at 1.91 cost you about 20.6% of the fair payout (25.42 vs 32.00).
That's why bookmakers like parlays: the bettor sees a big number, while the house edge is quietly larger than on any single leg. Parlays aren't "wrong" to play, but they're a more expensive form of entertainment, and they should be sized like one.
Voids, pushes and other edge cases
Real parlays don't always settle cleanly. Typical rules, which you should confirm in the sportsbook's terms, are:
- Void leg (postponed game, non-runner): the leg is usually removed and the parlay recalculated as if it had odds of 1.00. A three-leg parlay becomes a two-leg one.
- Push (a whole-number total lands exactly, for example): also commonly treated as odds of 1.00 for that leg.
- One leg loses: the whole parlay loses, even if every other leg wins.
Worked example: a void leg
Using the hypothetical parlay above, suppose leg 2 (1.90) is voided.
- New parlay odds: 1.80 × 1.00 × 2.00 = 3.60
- $10 stake now returns $36.00 if the other two legs win.
Same-game parlays and correlation
A same-game parlay combines selections from one event, such as a team to win and its star player to score. Results within one game are often linked (correlated). Sportsbooks know this and price same-game parlays differently or restrict some combinations. Don't assume the payout equals simply multiplying the single-leg prices.
How to approach parlays more sensibly
- Keep stakes small. Treat a parlay stake as a fraction of your normal unit, not a full one. Our bankroll management guide explains units.
- Fewer legs. Each extra leg adds margin and cuts your chance of winning.
- Know each leg. If you wouldn't bet a leg on its own, ask why it's in the parlay.
- Check the slip. Confirm the combined odds and return before confirming.
- Don't chase with longer parlays. A ten-leg "comeback" ticket is the most expensive way to try to win back losses.
- Read cash-out offers calmly. If cash-out is offered on a parlay, it reflects current odds plus margin. It changes your risk; it doesn't add value.
FAQ
What happens if one leg of my parlay loses?
The entire parlay loses. Every leg has to win (or be voided or pushed, depending on the rules) for the bet to pay out.
How do I calculate a parlay payout?
Multiply the decimal odds of all legs, then multiply by your stake. For example, legs at 1.80, 1.90 and 2.00 give 6.84; a $10 stake returns $68.40.
Are parlays a good bet?
They can be fun, but they're mathematically more expensive than singles because the bookmaker's margin compounds with each leg. The chance of winning also drops quickly as you add legs.
What happens to a parlay if a game is postponed?
Usually the affected leg is voided and treated as odds of 1.00, and the rest of the parlay stands at reduced odds. Check the sportsbook's rules, as settlement can differ by market.
Conclusion
Parlays pay big because they're hard to win: the odds multiply, the probabilities shrink and the margin compounds. Understanding that maths doesn't make parlays a bad idea, it just helps you size them honestly. If you're in an eligible province and want to see how parlays are built on a real bet slip, our Stake sportsbook guide explains the layout, and new players can sign up with code SHIMA through the Claim button on this page.
Related Guides
- Ready to sign up? Start with the Stake.com referral code (SHIMA).
- Live Betting Tips: How In-Play Odds Move
- Sports Betting Bankroll Management: Simple Rules
- Sports Betting Bankroll Management: Simple Rules
- All Stake guides for Canada
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