Strategy

What is Baccarat? Rules, Strategy & Winning Tips

What is Baccarat? Rules, Strategy & Winning Tips
By Victor H. Royer May 3, 2025
10 minute read

What is Baccarat: What You’ll Learn

  • Understand the basic rules and objectives of baccarat, a classic casino card game.

  • Learn about the different variations of baccarat, including Punto Banco, Chemin de Fer, and Baccarat Banque.

  • Discover the typical table layout and the role of the dealer in baccarat.

  • Explore the betting options available to players, including Player, Banker, and Tie bets.

  • Gain insight into the house edge and payout structure associated with each betting option in baccarat.

Baccarat is one of the most elegant and misunderstood casino games in the world. Often associated with high rollers and velvet-roped VIP areas, this centuries-old card game has an air of sophistication that can intimidate newcomers.

Yet beneath the mystique lies one of the simplest casino games to play – and one with some of the best odds for players.

Let’s dive into this fascinating game and uncover what makes Baccarat a favorite among casino enthusiasts from Macau to Monte Carlo.

Understanding Baccarat’s Historical Origins

Baccarat’s history stretches back to medieval Italy, where it was reportedly invented in the 1400s by a gambler named Felix Falguiere. The name “Baccarat” comes from the Italian word “baccara,” meaning zero – reflecting that all tens and face cards are worth zero in this game.

The game quickly gained popularity among French nobility in the 15th century during the reign of King Charles VIII. By the 19th century, Baccarat had evolved into a game exclusively enjoyed by aristocracy and the elite social classes throughout Europe.

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One fascinating historical anecdote involves the future King Edward VII of England, who in 1891 was called to testify in court over what became known as the “Royal Baccarat Scandal.” Sir William Gordon-Cumming, a prominent British soldier and royal friend, was accused of cheating at Baccarat during a private game at Tranby Croft, a country estate.

The scandal rocked British society, as gambling was considered improper for the aristocracy, and the Prince of Wales’ involvement caused public outrage. The case revealed the elite’s fascination with Baccarat and inadvertently brought the game to wider public attention.

Over time, three main variants emerged:

  • Punto Banco: The North American version, now most widely played globally

The Punto Banco variation reached Las Vegas in the 1950s, where it was initially offered exclusively in high-roller salons before gradually becoming accessible to mainstream players. Today, Baccarat generates more revenue on the Las Vegas Strip than any other table game, surpassing even blackjack in many casinos.

Basic Rules of Baccarat

Baccarat is remarkably straightforward, despite its sophisticated image. Here’s how it works:

  • The Objective: The goal is to bet on which hand will have a total closest to 9 – the “Player” hand or the “Banker” hand.

  • Card Values:
    • Cards 2-9 are worth their face value
    • 10s, Jacks, Queens, and Kings are worth 0
    • Aces are worth 1
    • Only the rightmost digit of the total is used (so 15 becomes 5)

  • Gameplay:
    • Two cards are dealt to both the Player and Banker positions
    • A third card may be drawn based on fixed rules (no player decisions)
    • The hand closest to 9 wins

  • Scoring Example:
    • If the Player has 7+5=12, the value is 2 (only rightmost digit counts)
    • If the Banker has 9+3=12, the value is 2
    • This would result in a tie

The beauty of Baccarat lies in its simplicity – once you place your bet, no further decisions are required. The game proceeds according to pre-determined rules, making it perfect for players who prefer a relaxed gaming experience.

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The Role of the Player and the Banker

A common misconception about Baccarat is that “Player” and “Banker” refer to the actual participants in the game. In reality, these are simply the names of the two hands being dealt. You can bet on either hand, regardless of whether you’re physically sitting at the table.

The drawing rules for third cards are as follows:

Player’s Hand:

  • If the Player’s first two cards total 0-5, the Player draws a third card

  • If the Player’s first two cards total 6-7, the Player stands

  • If either hand has a total of 8 or 9 (a “natural”), both hands stand

Banker’s Hand:

  • If the Player stands, the Banker follows the same rule (draws on 0-5, stands on 6-7)

  • If the Player draws a third card, the Banker’s action depends on the Banker’s total and the value of the Player’s third card, following a complex but predetermined set of rules

These rules are automatically applied by the dealer – you never need to make these decisions yourself.

Betting Options in Baccarat

In Baccarat, there are three main betting options:

  • Player Bet: A bet that the Player hand will win. Pays 1:1 (even money) and has a house edge of approximately 1.24%.

  • Banker Bet: A bet that the Banker hand will win. Pays 19:20 (even money minus a 5% commission on wins) and has a lower house edge of approximately 1.06%.

  • Tie Bet: A bet that both hands will have the same total. Typically pays 8:1 but carries a high house edge of around 14.4%.

Some casinos also offer side bets such as:

  • Player/Banker Pair (betting that the first two cards will be a pair)

  • Perfect Pair (betting on specific paired combinations)

  • Big/Small (betting on the total number of cards dealt)

These side bets generally carry much higher house edges and are best avoided by strategic players.

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Common Mistakes to Avoid

Even though Baccarat is straightforward, players often make these mistakes:

  • Betting on Tie: Despite the attractive 8:1 payout, the tie bet has a massive house edge of 14.4%, making it one of the worst bets in the casino.

  • Ignoring Commissions: Some players forget that Banker wins are subject to a 5% commission, leading to confusion at payout time.

  • Following Patterns: Many Baccarat players meticulously track results looking for patterns, but each hand is an independent event with no connection to previous outcomes – especially true in electronic games and those online, because these are dealt by Random Number Generators (RNGs), and each deck (or decks) is/are shuffled by the computer continuously.

    In real-world casinos 8-deck shoes are generally used, and while these 8-decks of cards are shuffled by a shuffling machine, these produce a “slug,” which is the “shuffled group of the 8-decks” all shuffled together, which is then placed into the dealing “shoe.”

    In these games it IS possible to “track” the cards and “clumps” for THAT specific shoe duration, and, therefore, for these games, and under these specific circumstances, card-counting in Baccarat IS possible – although very difficult to do, and not very advisable – especially for casual players.

  • Overcomplicating Strategy: Complex betting systems can’t overcome the mathematical house edge and may such “systems” actually accelerate cumulative losses.

  • Playing Mini-Baccarat Carelessly: The faster pace of Mini-Baccarat can lead to more hands per hour, and therefore potentially larger losses if not managed properly.

Strategic Tips for Maximizing Success

While Baccarat is primarily a game of chance, these strategies can help maximize your enjoyment and potentially extend your bankroll:

  • Bet on the Banker: Mathematically, the Banker bet offers the lowest house edge at 1.06%, even after the 5% commission.

  • Manage Your Bankroll: Set loss limits and stick to them. A good rule is to stop playing after losing 50% of your session bankroll.

  • Avoid Progressive Systems: Betting systems like the Martingale (doubling after losses) can lead to devastating losses when a streak goes against you.

  • Track Your Results: Keep a record of your play to maintain awareness of your actual results versus your perception.

  • Take Advantage of Comps: Baccarat players often receive generous complimentary items due to the game’s higher minimum bets.

Baccarat’s Popularity in Macau and Beyond

Baccarat has achieved extraordinary popularity in Asian casinos, particularly in Macau, where it accounts for over 88% of casino table game revenue. This phenomenal success has transformed Macau into the world’s largest gambling center, surpassing Las Vegas in gaming revenue.

A remarkable story from Macau’s Baccarat tables involves Stanley Ho, the late casino magnate known as the “King of Gambling.” In 2005, a mysterious high roller reportedly won HK$100 million (approximately US$12.8 million) at Baccarat in one of Ho’s casinos.

The incident became legendary in Macau, with speculation that the player had employed a team to track shuffles and predict outcomes. Whether true or not, such tales have contributed to Baccarat’s mystique.

Comparing Traditional and Online Baccarat

Traditional casino Baccarat and online versions offer different experiences:

Traditional Casino Baccarat:

  • Full ceremonial drawing and revealing of cards
  • Social atmosphere with other players
  • Higher minimum bets (typically $25-$50 in Las Vegas)
  • Slower pace of play
  • Complimentary beverages and service

Online Baccarat:

  • Lower minimum bets (often as low as $1)
  • Faster gameplay
  • Privacy and convenience
  • Availability of free play for practice
  • Bonuses and promotions

Many online casinos now offer live dealer Baccarat, which combines elements of both experiences by streaming real dealers from a casino studio.

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Choosing the Right Baccarat Table

Not all Baccarat tables are created equal. Consider these factors when selecting where to play:

  • Commission Rate: Standard is 5% on Banker wins, but some tables offer reduced commissions of 4% or even commission-free Baccarat (with modified rules).

  • Table Minimums: Full-size Baccarat tables often have higher minimums ($25-$100), while Mini-Baccarat tables may start at $10-$25.

  • Game Variants: Look for favorable rules like Dragon Bonus, EZ Baccarat, or Progressive Baccarat if you enjoy side bets.

  • Game Pace: Mini-Baccarat deals approximately 40% more hands per hour than traditional Baccarat, affecting how quickly you could win or lose.

  • Table Atmosphere: Some players prefer the ritualistic, slower-paced full-size Baccarat tables, while others enjoy the more casual mini-Baccarat environment.

Managing Your Bankroll in Baccarat

Effective bankroll management is crucial for Baccarat players:

  • Session Bankroll: Determine how much you’re willing to lose before sitting down. A good rule is to have at least 30 times your average bet.

  • Bet Sizing: Keep individual bets to 1-5% of your total session bankroll.

  • Win Goals: Consider setting a win limit, such as 50% gain on your starting bankroll, at which point you’ll walk away.

  • Loss Limits: Decide in advance how much you’re willing to lose, such as 50% of your session bankroll.

  • Track Time: Set a time limit for your sessions to avoid fatigue-based mistakes.

A fascinating historical note involves John Fairfax, a professional gambler who famously claimed to have “won a fortune” at Baccarat in the casinos of Monte Carlo during the 1960s.

He used the winnings to finance his record-setting solo row across the Atlantic Ocean in 1969, demonstrating both his gambling skill and adventurous spirit. Fairfax later said he developed his Baccarat strategy through years of study and disciplined bankroll management.

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The Appeal of Baccarat: Simplicity and Elegance

Baccarat’s enduring appeal comes from its unique combination of attributes:

  • Simplistic Gameplay: Once bets are placed, no further decisions are needed.

  • Favorable Odds: The banker bet offers one of the lowest house edges in the casino at 1.06%.

  • Elegant Atmosphere: Traditionally played in special salons with attentive service.

  • Cultural Cachet: The game’s association with James Bond and high rollers adds to its mystique.

  • Dramatic Tension: Despite simple rules, the revealing of cards creates genuine suspense.

The James Bond connection deserves special mention. In the original Casino Royale novel by Ian Fleming (1953), Bond plays Baccarat (specifically Chemin de Fer) against the villain Le Chiffre.

This high-stakes showdown introduced millions of readers to the game and cemented its association with sophistication and intrigue. While the 2006 film adaptation changed the game to poker, Baccarat remains “the Bond game” in popular culture.

Understanding the House Edge in Baccarat

Baccarat offers some of the best odds in the casino:

  • Banker Bet: 1.06% house edge

  • Player Bet: 1.24% house edge

  • Tie Bet: 14.36% house edge (9:1 payout)

These numbers make Baccarat comparable to Craps and favorable Blackjack in terms of player odds. The small difference between the Banker and Player bets is due to the rules governing when each hand draws a third card, slightly favoring the Banker.

Some variations affect these odds:

  • Super Six/Punto 2000: Banker wins with a 6 pay only 50% of the bet, increasing house edge to about 1.5%

  • EZ Baccarat: No commission on Banker wins, but Banker wins with a three-card 7 push, maintaining similar house edge

  • Dragon Bonus: Side bet on natural wins or winning by large margins, with house edge of 2.65-9.37%

How to Practice Baccarat for Free

Before risking real money, consider these practice options:

  • Online Casino Free Play: Most online casinos offer free-play Baccarat games.

  • Mobile Apps: Numerous Baccarat apps provide realistic gameplay without financial risk.

  • Casino Tutorials: Many casinos offer free lessons during off-peak hours.

  • Home Practice: With a standard deck of cards, you can practice the drawing rules and card counting.

  • Observation: Watching others play at the casino can provide valuable insights without risking money.

Free practice helps familiarize you with the game’s pace and procedures, making your eventual transition to real-money play more comfortable.

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Advanced Baccarat Strategies

For serious players, these advanced concepts may provide slight advantages:

  • Card Counting: Unlike blackjack, card counting in Baccarat offers minimal advantage (about 0.05-0.07% with perfect counting).

  • Pattern Recognition: Some players track the outcomes of hands looking for patterns. While mathematically questionable, this approach is popular, particularly among Asian players.

  • Edge Sorting: A controversial technique where players identify manufacturing inconsistencies on card backs to gain advantage. This technique made headlines when professional poker player Phil Ivey used it to win millions before being denied payment by casinos.

  • Streak Betting: Following “hot” hands by switching bets to whichever side is winning. While not mathematically sound, many players find it psychologically satisfying.

One of the most notorious Baccarat incidents involved edge sorting. In 2012, Phil Ivey and an accomplice named Cheung Yin Sun won approximately $10 million playing Baccarat at Crockfords Casino in London and $9.6 million at the Borgata in Atlantic City.

They used edge sorting by convincing dealers to rotate certain cards, exploiting minute asymmetries in the card designs. Both casinos eventually refused to pay, leading to high-profile lawsuits that Ivey ultimately lost, with courts ruling that edge sorting constitutes cheating.

Frequently Asked Questions

What is the objective of Baccarat?

The objective is to bet on which hand – Player or Banker – will have a total closest to 9. You can also bet on a tie. After cards are dealt according to fixed rules, the hand with the total closest to 9 wins.

Can I count cards in Baccarat?

Yes, card counting is possible in Baccarat, but the advantage is minimal – approximately 0.05-0.07% with perfect counting. Unlike blackjack, where card counting can provide a significant edge, Baccarat’s drawing rules and multi-deck shoes make counting far less effective.

What is a natural win in Baccarat?

A “natural” in Baccarat occurs when either the Player or Banker hand receives a total of 8 or 9 with the first two cards. When this happens, no additional cards are drawn, and the hand with the natural wins. If both hands have naturals, the higher value wins, or it’s a tie if they have the same value.

Glossary of Baccarat Terms

  • Banco: Spanish and Italian term for “Banker”
  • Chemin de Fer: Traditional French version of Baccarat
  • Commission: The 5% fee charged on winning Banker bets
  • Coup: A complete round of play
  • Dragon Bonus: Side bet on natural wins or winning by large margins
  • La Grande A natural 9
  • La Petite: A natural 8
  • Punto: Spanish and Italian term for “Player”
  • Standoff: Another term for a tie
  • Tableau: The drawing rules for third cards

Baccarat: Simple and Elegant

Baccarat stands as one of the most fascinating contradictions in the casino world – a game with an aura of exclusivity and sophistication that’s actually one of the simplest to play. With its straightforward rules, favorable odds, and rich history, it’s no wonder Baccarat has maintained its popularity for centuries.

Whether you’re drawn to the game by its James Bond associations, its favorable mathematics, or simply its elegant atmosphere, Baccarat offers an accessible entry point to casino table games. The lack of complex decisions makes it perfect for beginners, while the relatively low house edge appeals to serious gamblers.

As you approach the Baccarat table, remember these key takeaways:

  • The Banker bet offers the best odds despite the 5% commission
  • The Tie bet should generally be avoided despite its attractive payout
  • No strategy can overcome the inherent house edge in the long run
  • Proper bankroll management is essential for enjoyable play

With these principles in mind, you’re ready to experience one of the world’s oldest and most prestigious casino games. From the grand salons of Monte Carlo to the massive Baccarat pits of Macau to your local casino, Baccarat continues to offer a unique blend of simplicity, elegance, and favorable odds that few other games can match.

And now you know!

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