| RTP | 98.94% - Compare RTPs |
|---|
Baccarat is one of the oldest card games in the casino world, and it remains one of the best for players who care about odds. With a house edge as low as 1.06% on the Banker bet, it sits alongside blackjack as one of the most player-friendly table games available. This guide covers how the game works, what the third card rule means, and which bets are worth placing.
How Baccarat Works
Each round of baccarat deals two hands - the Player hand and the Banker hand. You bet on which of the two will end up closer to a total of nine, or whether they will tie. You do not play either hand yourself. You simply back one of the three outcomes before the cards are dealt.
The dealer handles everything from there. Both hands receive two cards to start, and a third card may be drawn depending on the totals - more on that below.
Card Values in Baccarat
Baccarat uses its own card value system:
- Aces count as 1
- Cards 2 through 9 count at face value
- Tens, Jacks, Queens, and Kings all count as 0
When a hand total exceeds 9, the first digit is dropped. So a hand of 7 and 8 totals 15, which becomes 5 in baccarat. A hand of 9 and 6 totals 15, also becoming 5. The highest possible hand total is 9, called a natural.
The Third Card Rule
This is the part that confuses most newcomers, but you do not need to memorise it - the dealer follows fixed rules automatically. Understanding it does help you follow the action though.
Player hand third card rules: If the Player hand totals 0-5, it draws a third card. If the Player hand totals 6 or 7, it stands. On 8 or 9 (a natural), no cards are drawn by either side.
Banker hand third card rules: The Banker draws or stands depending on its own total and, sometimes, the value of the Player's third card. The full table of Banker drawing rules is set by the casino and applied automatically. The short version: the Banker draws on 0-2 regardless, draws on 3-6 depending on the Player's third card, and always stands on 7.
In practice, just watch the dealer. The third card rule is built into every baccarat game and is never left to player discretion.
The Three Bets and Their House Edge
Baccarat offers exactly three bets. Their house edges define everything you need to know about strategy.
Banker Bet - House Edge: 1.06%
The Banker bet wins slightly more often than the Player bet because of the way the third card rules are structured in the Banker's favour. This is why casinos charge a 5% commission on winning Banker bets - it keeps the house in profit despite the Banker winning more frequently. Even with the commission, the Banker bet carries the lowest house edge in the game at 1.06%. It is the mathematically correct bet to make in baccarat.
Player Bet - House Edge: 1.24%
The Player bet pays even money with no commission. The house edge is slightly higher at 1.24%, still very competitive for a casino table game. Some players prefer the Player bet to avoid tracking and paying commission, which is a reasonable preference even if it costs a small amount in expected value.
Tie Bet - House Edge: 14.36%
The Tie bet pays 8 to 1 when both hands finish equal, but ties are uncommon - they occur roughly 9.5% of the time. The 14.36% house edge makes this one of the worst bets at any table game. Avoid it.
Baccarat Strategy
Baccarat is a fixed-odds game with no decisions to make after placing your bet. There is no strategy in the blackjack sense, where your choices affect the outcome. The only decision is which bet to place.
The practical strategy is simple: bet Banker. It wins more often, has the lowest house edge, and the 5% commission still leaves you better off than the alternatives over time. If you find commission tracking annoying during a session, the Player bet is a reasonable second choice at 1.24% house edge.
Betting systems like the Martingale or Fibonacci can be applied to baccarat, but they do not change the house edge. They manage your bet sizing, not your odds. Flat betting on the Banker hand is the most efficient way to play if your aim is to reduce losses over a session.
Some players keep score of which hand has been winning recently, looking for streaks. This is a popular approach in Asian gambling culture and adds to the social aspect of the game. Statistically, each round is independent - past results do not influence future outcomes. The scorecards provided in live baccarat games are for entertainment and pattern-spotting, not prediction.
Baccarat Variations
Most online casinos offer a few different versions of baccarat:
- Punto Banco - the standard version described throughout this guide, with fixed drawing rules and three bet options
- Mini Baccarat - same rules, smaller table limits, faster pace
- Live Dealer Baccarat - streamed from a studio with a real dealer; available from Evolution Gaming, Playtech, and Microgaming among others
- No Commission Baccarat - Banker bets pay even money but a winning Banker hand of exactly 6 pays only 50%. Worth calculating before assuming it is a better deal
- Squeeze Baccarat - a live dealer variant where cards are slowly revealed for suspense
Playing Baccarat Online
Online baccarat plays identically to the land-based version with a few practical differences. The game is faster since there is no physical dealing. RNG (random number generator) versions reshuffle after every hand, so there is no shoe to track. Live dealer versions are closer to the full baccarat experience, with real cards dealt in real time.
Check the casino terms before playing if you are using a welcome bonus - baccarat is frequently excluded from bonus wagering requirements or contributes at a reduced rate.
Where to Play Baccarat
We're currently updating our casino list for Baccarat. In the meantime, browse our full casino reviews or check out current free spins offers.
Baccarat RTP and Variance
Baccarat has an RTP of 98.94%, which is well above average. See our highest RTP slots for the best returning games.