What “House Edge” Means In Baccarat
House edge is the casino’s built-in advantage. It’s the reason casinos can offer games all day and still expect to profit over the long run.
A simple way to think about it:
- Lower house edge means your money lasts longer
- Higher house edge means your money disappears faster
House edge does not tell you what will happen in the next five hands. It tells you what usually happens over hundreds or thousands of hands.
Start here if you want the full big-picture guide: The Complete Guide To Baccarat.
The Banker Bet Wins Slightly More Often
In standard baccarat (Punto Banco), Banker wins a little more often than Player. Not by a lot, but enough to matter.
That small difference is why Banker is usually the best-value bet at the table.
Important: It’s Not Because Banker “Goes Second”
Some players think Banker wins more because it gets dealt second. That’s not the real reason.
The real reason is the third-card rules.
The Third-Card Rules Give Banker A Small Built-In Advantage
Baccarat uses automatic drawing rules. You already know the basics:
- Player draws on 0–5 and stands on 6–7
- Banker draws based on its total and sometimes Player’s third card
That “sometimes Player’s third card” part is everything.
Why That Matters
Banker’s rules are designed to react to Player’s third card in a way that slightly improves Banker’s outcomes over many hands.
You can think of it like a small built-in correction system:
- when certain Player third cards appear, Banker draws more often
- when certain Player third cards appear, Banker stands more often
That helps Banker land closer to nine slightly more often than Player does.
If you want a simple breakdown of how those draw rules work in real hands, read What The Third-Card Rule Really Means (Explained Simply).
Why The Casino Takes Commission On Banker Wins
If Banker has better odds, why would casinos pay it out at the same rate as Player?
They usually don’t.
Most standard baccarat tables take a commission on Banker wins, commonly 5%.
What Commission Does
Let’s say you bet $100 on Banker:
- Banker wins
- You would normally win $100 profit at 1:1
- With 5% commission, you might receive $95 profit instead
Different casinos collect the commission in slightly different ways, but the idea is the same.
The commission is there to balance Banker’s built-in advantage. Even with the commission, Banker usually stays the lowest house edge bet.
Banker vs Player vs Tie: Which Bet Is Cheapest?
At a normal baccarat table, you can usually expect:
- Banker = lowest house edge
- Player = close second
- Tie = highest house edge (most expensive over time)
Tie looks tempting because the payout is big, but it hits less often than people expect. Over time, it’s usually the fastest way to drain a bankroll.
When Banker Isn’t As Good: No-Commission Baccarat Variants
Some casinos offer baccarat tables with “no commission” Banker bets. Sounds perfect, right?
Not always.
No-commission baccarat usually changes the payout rules in a way that gives the casino its edge back.
Common examples:
- Banker wins pay 1:1 most of the time
- But certain Banker winning totals (often a 6) pay less (like 1:2 or even push)
That reduced payout acts like a hidden commission.
What To Do As A Player
If you’re at a no-commission table:
- read the rules on how Banker wins are paid
- watch for special payouts on Banker 6 wins
- do not assume it’s automatically better than standard baccarat
Some no-commission tables are fine, but you should know what you’re trading.
Why “Bet Banker” Is Not A Magic Strategy
Banker being the lowest house edge does not mean:
- you will win today
- you can predict streaks
- you should chase losses
House edge is a long-run concept. Banker simply gives you the best “price” for each bet, like buying the same product at a cheaper store.
You still need a bankroll plan.
How To Use Banker Betting Without Falling Into Traps
Here’s the safe way to apply the “bet Banker” idea.
Keep Your Bet Size Consistent
If your goal is lower risk, use flat betting:
- pick a wager you can afford
- keep it the same each han
This keeps your swings controlled.
Avoid “Switching Because It Feels Due”
The scoreboard can trick you into thinking:
- Player is due
- Banker can’t keep winning
That’s not how randomness works. Banker’s edge is small and steady, not a prediction tool.
Use Session Limits
Because baccarat is fast, the bigger risk is speed, not complexity.
Set:
- a stop-loss
- a stop-win
- a break schedule
This matters more than whether you choose Banker or Player.
A Quick Example: Why Small Edges Matter
Imagine two players bet the same amount for the same number of hands:
- Player A always bets Banker
- Player B always bets Tie
Over time:
- Player A usually loses less
- Player B usually loses more
Not because Player A is “smarter,” but because Player A is choosing a cheaper bet.
That is why serious baccarat players lean Banker. It’s not exciting. It’s efficient.
Frequently Asked Questions
Is Banker Always The Best Bet In Baccarat?
Banker usually has the lowest house edge on standard tables, especially compared to Player and Tie. But payouts can change in no-commission variants.
Why Does Banker Pay Commission?
Because Banker wins slightly more often due to the third-card rules. The commission helps balance that built-in advantage.
Is Player A Bad Bet?
No. Player is usually close to Banker in cost. Banker is just slightly cheaper over time on most standard tables.
Is The Tie Bet Worth It?
Tie payouts are big, but ties happen less often. On most tables, Tie has the highest house edge and is the most expensive bet long-term.
Does Betting Banker Mean I’ll Win More Today?
Not necessarily. Banker lowers the cost of each bet over time, but short sessions still swing up and down.
Where To Go Next
You now know why Banker is usually the best-value bet, and how the third-card rules and commission shape that edge.
If you want to go one level deeper, the best next move is to look at the actual probabilities behind Banker vs Player, because that’s where the “small edge” becomes real numbers.
Continue with The Math Behind Player vs Banker Probabilities.
