While bettors enjoy parlays, the true beneficiaries of those high-risk bets are sportsbook operators. A fintech firm aims to enhance the utility of parlays for both bettors and savers. 

Layup, a fintech startup based in New York, is the developer of a mobile app that delivers daily sports selections in an accumulator format. Instead of betting the deposit, customers keep it in a bank account. Every selection gives the gambler a chance to earn actual cash, but the principal stays intact. It resembles the Prize Bonds found in Ireland, the native country of Layup’s creators. 

"The concept is based on Irish Prize Bonds, which are operationally a lottery funded by the interest earned on the $5 billion worth of deposits in the program,” according to a press release. “But in Ireland, it’s much more significant: Prize Bonds are a safe, fun, and trusted way to enjoy the thrill of winning without the risk of financial loss.”

Layup can be accessed on both the Apple iOS and Google Android mobile platforms. Funds deposited into Layup accounts are transferred to accounts at nbkc bank, which is overseen by the Federal Deposit Insurance Corporation (FDIC). 

Layup Won't Ensure Victories, But It Averts Defeats 

Every gambler desires a guaranteed outcome, and while Layup doesn’t promise victories, it states on its site that clients won’t incur losses. nbkc bank compensates Layup for attracting deposits, and that funding is utilized to settle winning wagers. 

The idea isn’t without cost. Layup also makes it clear that while its concept protects bettors from losses, the accounts do not earn interest. In other terms, customers' funds remain in a bank account without the chance for that money to grow, yet there is a possibility for the capital to be used on successful bets. 

The absence of interest might be hard for some to accept, as current US interest rates remain high, with the typical interest rate on a high-yield savings account at 4.40%, and this is considered a risk-free investment. A few banks provide additional services beyond that. There remains an argument for the convergence of gambling and financial security — one that is seldom realized on conventional sports betting sites. 

Layup may also benefit beginner bettors as it relieves them from making their own choices. The system relies on chance, utilizing an algorithm to position customers on either side of a betting line. The firm observes that there are 21 nearly 50/50 lines in a week, enabling it to create 2.09 million distinct selections. 

Layup Might Revive Parlays Once More 

Parlays attract bettors by offering the chance for substantial payouts on minimal bets, yet these wagers resemble lottery tickets since the odds are unfavorable for customers from the start. Evidence supports this entirely. 

“In 2024, Americans lost approximately $8 billion on parlay bets, a form of sports gambling especially popular among young men. At the same time, this same group is facing historically low savings rates and increasing financial stress,” according to Layup.

Layup might be onto something. Co-founder and CEO Owen Monagan points out that after one month, 60% of Layup users are decreasing their engagement with conventional sportsbook applications.