Paulie’s Gambling Education Series, pt. 6: Parlays & Round Robins

What is a “parlay”?

A parlay is a combination of bets that only pays out if all bets are won. Here is an example:

• • You bet $40 on Chiefs -7 parlayed with Patriots -3.5 and Packers -4.

• • The payout for this wager is +600 meaning you profit $240 if you win the bet.

• • In order to win the bet, all 3 bets must win.

• • Even if  you win 2 out of 3, you still lose the $40.

• • Your payout structure would look like this:

• • All 3 teams win: $240

• • At least 1 loss: -$40

• Note: if one of your bets ties, the parlay is still alive but the payout is then just reduced accordingly.

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What is a “round robin”?

A round robin is a combination of parlays. A $10 3 team round robin of the above scenario would contain a total of 4 parlays ($40 risked in total) and look like such:

• • Chiefs -7/Patriots -3.5 pays +260

• • Chiefs -7/Packers -4 pays +260

• • Patriots -3.5/Packers -4 pays +260

• • Chiefs -7/Patriots -3.5/Packers -4 pays +600

Your payout structure would look like this:

• • All 3 teams win: +$138

• • Only 2 of the 3 teams win: -$4

• • 0 or 1 teams win: -$40

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What is the advantage of a round robin versus a parlay?

A round robin can still provide upside but has much less variance than just a single parlay since you can minimize your loss if you just barely miss winning all the games.

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How much of my action should be parlays and/or round robins?

Only a small portion of your action should be allocated to parlays or round robins. Most people enjoy playing them because of the chance of a very large payout and because they are fun. But beware, excessive use of parlays or round robins can be a drain on your bankroll and ROI. They are best reserved for cases where you feel like you have a significant edge in the lines in a few games.

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Do I hedge if I have a big parlay or round robin that is close to hitting?

YES!!! We are all about building up your bankroll. There is no worse feeling in the world than thinking that you will be hitting a large payday and then lose the final game and end up with a loss.

How should I hedge?

Let’s walk through an example of how to hedge:

• • Suppose you bet $10 and parlayed 6 games on an NFL Sunday and that parlay pays 45/1.

• • You have won the first 5 games and now you need the Bears on Sunday night to win to cash the parlay.

    • What would you do in this instance?

• • Here is what you should do:

    • Bet $165 to win $150 on the Rams to cover the spread over the Bears.

• • Your payout structure would look like this:

    • • Bears cover the spread:

        • • Parlay result: +$450

        • • Hedge result: -$165

        • Total result: +$285

    • Rams cover the spread:

      • • Parlay result: -$10

      • • Hedge result: +$150

      • Total result: +$140

• So regardless of the outcome you are winning some good money and have a nice ROI. Essentially you are cashing out $140 regardless of result and then get an additional $145 if the Bears cover the spread.

My train of thought when it comes to hedging parlays and round robins is that I want to guarantee myself at least a decent sized profit regardless of the result.