Parlay bets are generally bad for consumers due to the unfavorable odds. These bets can also pose problem gambling risks due to the psychological mechanism called the near-miss effect.

Gamblers as a whole lose more on parlays than on any other wager type. Conventional online betting apps generate around 60% of their revenue from parlays. Consequently, betting companies aggressively promote these bets.

Parlays are similar to the lottery due to their low odds of winning, but they are like slot machines in one crucial way.

Parlays often produce the potentially risky experience of a near miss.

What is a Parlay?

To understand the risks discussed above, parlays refer to combination bets for the chance at a bigger payout if all of them—called “legs” by sports bettors and the industry—hit.

For example, a parlay could involve picking the winners of five different baseball games played on the same day. The payout could be substantial because the parlay would win only if all five predictions were correct. Another example would be picking several players on different teams to hit a home run on the same day.

For decades, Las Vegas sportsbooks had offered these multi-game parlays. The rise of betting apps made it possible for a mass market product called a same-game parlay.

Same-game parlays refer to a combination wager of multiple events during a single live sporting contest. For example, this could involve betting on a team to win the Super Bowl, the team’s quarterback to rush for a touchdown, and the game to go over a certain number of points.

Player prop bets are key components of same-game parlays.

Multi- and same-game parlays generate significant profits for online sportsbooks. For example, DraftKings reported that in 2025, users attempted to win a total of $2.5 trillion by placing bets across the platform, with a large share of that theoretical risk coming from parlays.

Near Miss vs. Clear Miss in Gambling

In gambling, a losing outcome can sometimes appear close to a winning one. With slot machines, you might match several of the symbols required for a jackpot but miss the others.

Near misses can be very unpleasant. Clear misses, on the other hand, can feel less stressful, making gambling potentially less habit-forming.

A 2009 University of Cambridge study researched brain activity behind these experiences.

“As a consequence of near-misses, the gambler may feel that he is ‘not constantly losing but constantly nearly winning’ … In many gambling games, however, winning outcomes are chance events, and near-misses are not predictive of winning, and so it would be misleading to assign value to near-misses,” the Cambridge study said.

The Potency of the Near-Miss Effect

People can have difficulty evaluating the reality of near-miss outcomes.

The belief that you’re due for a win is a common (and dangerous) gambling-related myth. Some gamblers are anxious that quitting may be before a big win.

“Humans are often deficient at processing chance events,” researchers added, “and it is conceivable that gambling games may harness a reinforcement learning system that evolved to handle skill-oriented behaviors.”

The loss of money is the same whether it’s a near or clear miss. A near win can make it harder for bettors to quit until they finally win. Chasing a big win can develop into a problem.

Let’s explain how this applies to parlay bets.

You Usually Have Winning Legs

Like the slot machine symbols, some of the parlay legs will prove successful, with the entire wager losing because of unsuccessful legs. Sometimes a wager is lost because of only one leg.

When each leg has even odds and the outcomes are unconnected, a three-leg parlay is three times more likely to have two correct predictions and one incorrect (2-1 record) than all three correct (3-0 record). Similarly, a five-leg bet is five times more likely to be successful on four legs out of five (4-1) compared to all five correct (5-0). With 10 legs, you are ten times more likely to have nine correct and one incorrect (9-1) than all 10 correct (10-0).

Sportsbooks don’t offer odds that account for the increasing improbability, making parlays financially unwise and psychologically risky. Betting platforms are increasingly using A.I. to set these odds.

There have been exceptions to the standard parlay format. For the 2025-26 NFL campaign, DraftKings unveiled a “Ghost Leg” parlay promo with a twist. The sportsbook would allow one leg to lose and still pay out as if the bet won. 

Regardless, near misses in parlays often keep gamblers betting in hopes of a big win, with this behavior sometimes reinforced by chasing losses.

Chasing is often an early sign of a sports betting addiction. More than half of online bettors report trying to recoup lost money.

How Much Can You Win From a Parlay?

Typically, online sportsbooks set a $1 million maximum win for parlays, though this can vary by sportsbook and state. This rule is intended to limit the sportsbook’s risk exposure.

The sportsbook will usually tell you to reduce your bet size if the potential payout is more than $1 million. Typically, bettors wager a handful of dollars on parlays in the hopes of winning big.

Unlike the lottery, with clearly defined odds of winning, sportsbooks don’t give you the true chances of winning your parlay. 

The odds you receive are the price of the bet, which isn’t reflective of a real-life probability.

Why Parlays Generally Aren’t Worth It

You should consider avoiding these wagers, including multi- and same-game parlays.

The odds are stacked against you, and you could be at risk of developing problem gambling. Betting parlays doesn’t mean you have a gambling problem, but it could be the start of one.

Because parlays generate so much money for sports betting apps, these companies often promote them through push notifications, which can reinforce problematic play. A common push notification is to bet a pre-made parlay.

Abstaining from parlays is one way to potentially prevent a sports betting addiction.

If you are struggling with a sports betting addiction, consider these tips to quit gambling. Call 1-800-GAMBLER for immediate help.

Frequently Asked Questions

Why aren’t my parlay bets winning?

Parlay bets are hard to win, especially with more legs. Winning a huge one is extremely rare.

How often do parlays hit?

A typical four-leg wager with even odds wins about 6% of the time. A parlay’s winning chances depend on its components. You may never hit a 25-leg parlay, which is usually the maximum allowed at a sportsbook.

How can I stop betting?

You should consider closing your sports betting account, deleting the apps, and seeking support to avoid betting. You can also self-exclude from apps like DraftKings and FanDuel.

Has anyone gotten rich from a parlay?

There have been rare cases of someone winning a six-figure jackpot from a sports bet, but we can’t say with certainty that it made the bettor wealthy. Gamblers often lose significant portions of their winnings.

Can you make a living from parlays?

There are no known sports bettors who have made a living from parlays. In general, winning money from betting is rare, with just 4% of bettors winning over a five-year period, according to one study.

Can you be addicted to these bets?

Online sports betting is among the most addictive forms of gambling, and parlays may be one of the more addictive bet types. It is possible to become addicted to parlays.