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Yes, parlay is a Scrabble word!
...and is worth 11 points in Scrabble, and 12 points in Words with Friends
1. Stake winnings from one bet on a subsequent wager
1. A series of wagers in which the winnings from one wager are used as a stake for the subsequent wagers
What Scrabble words can I make with the letters in parlay?
5 Letter Words
4 Letter Words
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2 Letter Words