Why Does the Banker Have an Advantage in Baccarat?
The banker’s hand has a slight advantage over the player’s in baccarat, but this advantage is not inherent to the role of the banker. The advantage is mainly attributed to the rules of baccarat and how the game is structured.
The rules dictating when the player and banker should draw additional cards are different. These rules are predetermined. In most baccarat variants, if the player’s initial two cards are 0 to 5, they will draw an additional card. However, if the player’s total is 6 or 7, they will stand and draw no more cards. On the other hand, the banker has a more complex set of rules that depend on the player’s third card, if drawn. These rules give them a slight advantage; hence a bet on the banker is considered the best bet in baccarat.
Understanding the Banker’s Advantage
The banker’s hand winning has a probability of approximately 45.85%, whereas the player’s hand has a probability of approximately 44.62%. However, this advantage is significantly smaller than the 5% commission on winning banker bets.
Factors Contributing to the Banker’s Advantage
The objective of baccarat is to bet on the hand that will have a total value closest to 9. Two hands are dealt: the “player” hand and the “banker” hand. The rules for the banker are more intricate and depend on the player’s third card if drawn, and the banker’s initial hand value. The banker must follow a set of rules known as the “Third Card Rule”:
- When the banker’s initial two cards have a total value of 0 to 2, an additional card is always drawn.
- When the banker’s total is 3, a 3rd card is drawn unless the player happens to have an 8 as a
- 3rd card.
- If the banker’s total amounts to 4, a 3rd card is drawn only when the player’s 3rd card is between 2 and 7 (inclusive).
- If the banker’s total is 5, a 3rd card is drawn only if the player’s 3rd card falls within the range of 4 to 7 (inclusive).
- If the banker’s total stands at 6, a 3rd card is drawn only if the player’s 3rd card is either 6 or 7.
- The banker does not draw any more cards if their initial two-card total is 7.
Comparing Player vs. Banker Bet
Each of these bets comes with its own set of odds and advantages. Let’s compare the player and banker bets:
Player Bet
- Payout: 1:1 (even money). If you win, you get back the same amount you bet plus an additional amount equal to your bet.
- House Edge: Approximately 1.24%. On average, the casino retains about 1.24% of each player bet as profit over the long run.
- Probability of Winning: Around 44.62%. The player bet has a slightly lower chance of winning than the banker bet.
Banker Bet
- Payout: 1:1 minus commission. The casino usually charges a commission of around 5% on winning banker bets. So, if you win a banker bet, you receive your initial bet amount, but the casino takes a 5% commission from your winnings.
- House Edge: Approximately 1.06%. The banker bet has a lower house edge. This is primarily attributed to the commission taken on winning banker bets. The lower house edge means the casino retains about 1.06% of each banker bet as profit over time.
- Probability of Winning: Around 45.85%. The banker bet has a slightly higher chance of winning than the player bet.
