Baccarat House Edge and Odds
| Updated: Learning the Odds of Winning in Baccarat
Baccarat is a classic casino game with a rather simple set of rules, an entertaining nature, and potentially rewarding outcomes. Like any game of chance, baccarat has a house edge that indicates the advantage the casino holds over players. There are three possible bet options in baccarat, each with different odds of winning.
If you want to know which bet is best when you play baccarat, you must first become familiar with the odds of each option. That way, you can determine the wager that is potentially the most rewarding in the game of baccarat. One thing to remember, however, is that the casino will always ensure it has an edge over players. To show you how this is achieved in baccarat, we have covered the odds and house edge of every bet in the card game. To learn more, we suggest you keep reading.
Baccarat House Edge
One of the most important things every player should consider before playing a casino game is its house edge and odds. These indicators are somewhat dynamic, as they can vary depending on the casino and the specific game variation. Baccarat is often a high-stakes game, so its house edge is especially important because the minimum bet is significantly higher than in many other table games. Therefore, players should take their time to get familiar with their chances of winning before betting substantial amounts of money. This is also the reason why Baccarat is the favorite game of many high-rollers, as it suits their betting habits and gaming style.
Baccarat is a casino game with a moderately low house edge – the most common rules of the game offer 1.09% on the Banker bet, 1.24% on the Player bet, and 14.36% on the Tie wager. However, players should always double-check the rules beforehand to make sure they are not altered in favor of the casino. On average, it is estimated that the banker wins around 50.68% of the non-tie bets, whereas players win 49.32%. The house edge that applies to the ‘player’ bet is determined by subtracting the second percentage from the first one.
It is clear that there isn’t much difference between the odds, and in this case the banker, who represents the casino, does not have a real advantage. This is the reason why the casino has imposed a countermeasure to make the odds favorable again. As a result, one of the rules that apply is that the casino is entitled to a 5% commission on every winning banker bet. This way, the built-in advantage remains, and players are deprived of the chance to gain a long-term edge.
Wagering Odds
As already mentioned, the rules of baccarat are relatively easy to learn. One of the basic rules concerns the different types of bets. Players can choose among three options when placing their chips on the table. Each table has designated areas labeled as ‘player’, ‘banker’, or ‘tie’. These are the only wagers you can place during the game. Each wager comes with different odds, which is why you should become familiar with them before deciding where to place your money.
The odds differ significantly between the three bets. If players decide to place a wager on the ‘player’ section, the house edge is estimated to be 1.24%. If they choose to put a bet on the ‘banker’ section, it is 1.06%. However, when it comes to the ‘tie’ bet, the house edge is much higher – 14.4%.
| Baccarat Wagering Odds and House Edge | |
|---|---|
| Bet Type | House Edge |
| Banker | 1.06% | Player | 1.24% |
| Tie | 14.40% |
The Bet with the Worst Odds
One bet that is worth discussing is the ‘tie’ bet because it has an exceptionally high house edge. It is observable that the odds of this wager are clearly unfavorable to the players, and therefore they should refrain from choosing it. Even though its eight-to-one payout may be tempting, you must remember that its odds are far worse than those of the other available bets.
The Bet with the Best Odds
After considering the odds, it is easy to decide which bet offers the lowest house edge and therefore minimizes potential losses. In order to do so, players should bet on the ‘banker’ section, as its house edge has proven to be the lowest. Even with the 5% commission the casino collects on winning banker bets, this is still the best option, and players should not be discouraged from trying it.
The reason why the ‘banker’ bet has the lowest edge is its higher likelihood of winning. The ‘banker’ hand is completed last, giving it more chances to win than the ‘player’ hand. In addition, the banker’s decisions depend, for the most part, on the cards drawn to the ‘player’ side. Much like blackjack, the hand that draws last tends to win more often.
The banker hand always stands on a two-card total of 7, 8, or 9. Any other total triggers the drawing rules, and the banker’s action depends on the cards the ‘player’ side has drawn. In this respect, baccarat resembles blackjack, where the house gains an advantage because the dealer acts after the player. In blackjack, this can cause the player to bust before the dealer even acts. In baccarat, players cannot bust, but the timing still favors the banker, which ends up with more wins in the long run.
Relation between the House Edge and the Payout Percentage
Another major reason it is essential to consider the house edge in baccarat is that it also influences the payout percentage. Even with a low house edge, an unfavorable payout percentage can prevent players from recouping their losses. Because the house edge, also expressed as a percentage, shows how much players are expected to lose on every bet, it affects their bankroll just as much as the payout percentage does.
It is worth mentioning that Baccarat is a game of chance and, as such, its outcome cannot be predicted. Therefore, in contrast to strategy games such as blackjack, it is impossible to apply a betting routine that guarantees long-term profit.
Calculating House Edge for Baccarat Bets
If you are chasing bigger payouts, you are advised to place your money on either ‘banker’ or ‘player’, as these bets have extremely low house-edge percentages compared to the ‘tie’ wager.
Let us consider that the ‘player’ hand wins 49.32% of all non-tie bets, while the ‘banker’ hand wins 50.68%. In the case of wagering 100 credits on ‘player’, you can expect to lose 50.68 credits and win 49.32 credits on average. If we subtract 49.32 from 50.68, we get 1.36, indicating the house edge of the ‘player’ bet.
The odds on the ‘banker’ bet are calculated in a slightly different manner. As the house is entitled to a 5% commission for every winning ‘banker’ bet, if you stake 100 credits on this side, you will win 0.95 credits for every 1 credit wagered. If we take the expected win of 50.68% for the ‘banker’ bet and multiply it by 0.95, we get 48.15. Meanwhile, the losing chances for this bet are estimated to be 49.32% of all non-tie bets. If we subtract 48.15 from 49.32, we get 1.17, representing the house edge.
As for the ‘tie’ bet, it wins 9.55% of all bets. If we divide 100 by 9.55, we get 10.47, but we must keep in mind that a win would indicate that your original bet will also be returned to you. This means that we will get the true odds of the ‘tie’ bet by subtracting 1 from 10.47, resulting in odds of 9.47 to 1, or receiving 9 credits. To get the house edge of the ‘tie’ bet, you divide 1.47 (the difference between 10.47 and 9) by 10.47, getting the house advantage of 14.4% for this wager. Despite its high house edge, many players are tempted to bet on ‘tie’ because of its high payout.
Important Things to Consider
The house edge of a particular casino game is an important factor that is often neglected. It is essential to know the odds and probabilities, as they serve as good indicators of players’ chances of winning the respective game. As already mentioned, when it comes to baccarat, the odds depend strictly on the type of bet you choose. However, other factors also play a crucial role in determining your chances of winning.
Another important consideration is whether the rules of the game remain unchanged, as some casinos tweak them—either to make the game more attractive or to increase the house edge. You should also check whether the chosen game is a variation of baccarat, because, if so, the odds will likely differ. Players should be aware that any rule change, even a minor one, directly affects the house edge.
Punto Banco, or simply baccarat, is the most widespread version of the game today and can be found in every leading casino. However, there are other popular variations such as Chemin de Fer and Baccarat Banque, whose rules differ significantly from the classic game. Therefore, their odds and probabilities are not the same. Players should also bear in mind that when baccarat is played online, its odds and house edge will likely differ slightly because of the virtual nature of the game.
The Role of the Deck
Baccarat is a card game, and as such, the number of decks used inevitably influences the outcome. However, the most important question is to what extent exactly the house edge depends on the number of decks. Let’s have a look at the odds of each bet when the game is played with eight decks. The ‘player’ bet is calculated to win 44.62% of the time, the ‘banker’ wager – 45.86%, and as for the ‘tie’ bet the odds are 9.52%.
Now, let’s consider the following situation – the game is played with a single pack of cards. In this case, the odds of the ‘banker’ bet are 45.96%, of the ‘player’ bet – 44.68%, and of the ‘tie’ one – 9.36%. It is observable that there isn’t much difference in the betting odds when it comes to the ‘player’ and ‘banker’ bets. However, the ‘tie’ bet is influenced by the number of decks involved in the game. From these examples, we can draw the following conclusion: the fewer the decks in use, the lower the chances of winning a ‘tie’.
| Baccarat Payout Depending on the Number of Decks | |
|---|---|
| 8 Decks | |
| Banker | 45.86% | Player | 44.62% |
| Tie | 9.52% |
| 1 Deck | |
| Banker | 45.96% | Player | 44.68% |
| Tie | 9.36% |
| House Edge for Baccarat Bets According to Number of Decks | |||
|---|---|---|---|
| 8 decks | 6 decks | 1 deck | |
| Banker | 1.06% | 1.06% | 1.01% |
| Player | 1.24% | 1.24% | 1.29% |
| Tie | 14.36% | 14.44% | 15.75% |
Conclusion
Baccarat is one of the oldest casino games still played today. It has a relatively low house edge compared to other casino classics, making it especially enticing to players worldwide. Moreover, its rules are very easy to learn, which makes it suitable even for inexperienced gamblers. To fully enjoy the game and increase their chances of winning, players should become familiar with the available bets and their respective house edges.