Is “Parlay” a Scrabble word?

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Yes
PARLAY
Valid in at least one Scrabble dictionary

Valid in these dictionaries

SOWPODS / CSW
Scrabble UK & International
Valid
TWL / NWL
Scrabble North America
Valid
Large English Dictionary
General English word list
Valid

Meaning of Parlay

/ˈpɑːleɪ/

noun
  1. 1.(originally United States) A bet or series of bets where the stake and winnings are cumulatively carried forward; an accumulator.

verb
  1. 1.To carry forward the stake and winnings from a bet on to a subsequent wager or series of wagers.

  2. 2.(by extension) To increase (an asset, money, etc.) by gambling or investing in a daring manner.

    Shall we parlay the value of our products?

  3. 3.(by extension, generally) To convert (a situation, thing, etc.) into something better.

verb
  1. 1.To have a discussion, especially one between enemies.