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Yes, parlay is in the scrabble dictionary

...and is worth 12 points by itself.

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Parlay Definition

noun

A bet comprising the sum of a prior wager plus its winnings or a series of bets made in such a manner.
from The American Heritage Dictionary of the English Language, 4th Edition
A series of two or more bets so set up in advance that the original stake plus its winnings are risked on the successive wagers.
from Free Scrabble Dictionary
The fresh risking of an original stake together with its winnings.
from Free Scrabble Dictionary

verb-transitive

To bet (an original wager and its winnings) on a subsequent event.
from The American Heritage Dictionary of the English Language, 4th Edition
To maneuver (an asset) to great advantage: parlayed some small investments into a large fortune.
from The American Heritage Dictionary of the English Language, 4th Edition

verb

To bet in a parlay.
from Free Scrabble Dictionary
To exploit successfully.
from Free Scrabble Dictionary
To increase or otherwise transform into something of much greater value.
from Free Scrabble Dictionary

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Wildcard(?) letters appear in RED

Here are some other words you could make with the letters PARLAY, you can also
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Top Words by points

Points
parlay

11

2 letter words with PARLAY

Points

al

2

ar

2

ay

5

aa

2

ya

5

la

2

pa

4

3 letter words with PARLAY

Points

yar

6

yap

8

rya

6

ray

6

rap

5

pya

8

pry

8

ply

8

pay

8

pal

5

aal

3

ala

3

alp

5

lap

5

lar

3

lay

6

par

5

4 letter words with PARLAY

Points

paly

9

para

6

play

9

pray

9

aryl

7

alar

4

raya

7

5 letter words with PARLAY

Points

playa

10

alary

8

6 letter words with PARLAY

Points

parlay

11

Found 34 words in 0.16884 seconds