Why Casinos Created Different Baccarat Variations
Understanding how commission changes affect your odds
The Original Baccarat Game
Traditional baccarat offered relatively fair odds to players. The game featured a 5% commission on banker wins, which balanced the slight advantage the banker bet had due to drawing rules.
• 5% commission on banker wins
• Banker house edge: 1.06%
• Player house edge: 1.24%
• Tie house edge: 14.36%
• Banker is the best bet
The Commission-Free Baccarat
In recent years, casinos have introduced "commission-free" baccarat tables. While this sounds appealing, it actually makes the odds worse for players.
• Traditional: 5% commission on banker wins
• Commission-free: No commission, but banker pays 0.95:1
• House edge increase: +0.32%
• Banker edge becomes 1.38% instead of 1.06%
Commission-free baccarat increases the house edge by 0.32 percentage points - making it worse for players!
Mini-Baccarat Variations
Mini-baccarat was introduced to make the game more accessible, but it often comes with worse odds:
Commission-Free Mini-Baccarat
Many mini-baccarat tables are commission-free, which means they have higher house edges than traditional baccarat tables.
• Traditional mini-baccarat: 1.06% (banker), 1.24% (player)
• Commission-free mini-baccarat: 1.38% (banker), 1.24% (player)
• Difference: 0.32% worse for banker bets
Comparison Table
| Variation | Commission | Banker Edge | Player Edge | Best Bet |
|---|---|---|---|---|
| Traditional | 5% | 1.06% | 1.24% | Banker |
| Commission-Free | 0% | 1.38% | 1.24% | Banker (worse) |
| Mini-Baccarat | 5% | 1.06% | 1.24% | Banker |
| Commission-Free Mini | 0% | 1.38% | 1.24% | Banker (worse) |
Why Casinos Make These Changes
Each variation serves a specific business purpose:
1. Increased Profit Margins
Commission-free baccarat increases the house edge by 0.32%, meaning more money flows to the casino over time. This is why many casinos have switched to commission-free tables.
2. Psychological Appeal
"Commission-free" sounds better to players than "5% commission," even though the odds are actually worse. This is a classic example of marketing over mathematics.
3. Accessibility
Mini-baccarat was created to make the game more accessible to casual players, but it often comes with worse odds than traditional baccarat tables.
The Impact on Your Bankroll
Let's say you bet $100 per hand for 1,000 hands on banker:
• Traditional baccarat: $1,060 (1.06% × $100,000)
• Commission-free baccarat: $1,380 (1.38% × $100,000)
• Difference: $320 more lost with commission-free
Commission-free costs you $320 more per 1,000 hands!
How to Spot Good vs Bad Tables
Always check the commission structure before playing:
Good Signs (Seek These Out)
- 5% commission on banker wins
- Traditional baccarat tables
- Lower minimum bets
- Multiple table options
Bad Signs (Avoid These)
- Commission-free tables
- High minimum bets
- Limited table options
- Side bets with high house edges
Understanding the Commission
The 5% commission on banker wins exists for a mathematical reason:
• Banker wins slightly more often than player (50.68% vs 49.32%)
• Without commission, banker would have a positive expected value
• 5% commission balances this advantage
• Commission-free tables use 0.95:1 payout instead
The commission-free variation sounds better but actually gives the casino a larger advantage.
Where to Find Better Rules
Better baccarat rules are typically found in:
- High-limit rooms: Often have traditional commission structures
- Traditional casinos: May offer better odds than newer properties
- Asian-focused casinos: Often have traditional baccarat rules
- Off-strip properties: Sometimes offer better odds to compete
The Bottom Line
Casinos didn't create commission-free baccarat to help players - they created it to take more money. The difference between 1.06% and 1.38% house edge compounds significantly over time.
Always check the commission structure before playing baccarat. Traditional 5% commission tables offer better odds than commission-free tables.
Remember: even the best baccarat rules still give the house an advantage. The goal is to minimize that advantage by choosing traditional commission tables.
Best strategy: Always bet banker on traditional commission tables, and avoid commission-free variations entirely.
The only way to eliminate house edge completely is not to play. If you choose to play, minimize your losses by choosing the best available tables.