Woman dealer dealing cards at a casino table, with gold coins falling in the background.

Baccarat is a game that may seem mystifying but is actually quite simple. Even though there is an air of sophistication and complexity surrounding it, the basic bets are just a choice between the player and banker. Unlike other table games, strategy doesn’t really come into it. Instead, baccarat follows a rigid set of rules that dictate how and when cards are dealt, and how hands are scored.

One of the most frequently asked questions is, “Why does the banker have an advantage in baccarat? Below, we’ll dive into the numbers behind the baccarat banker advantage, explore why baccarat is so popular in Chinese culture, and even touch on why baccarat scenes appear so much in James Bond movies. We’ll also discuss whether baccarat offers the lowest house edge and answer other intriguing baccarat-related questions.

Why Does the Banker Have an Advantage in Baccarat?

The fundamental reason the banker wins more often in baccarat is due to the game’s drawing rules. Unlike blackjack, where a player makes decisions, baccarat follows a fixed set of rules for drawing additional cards. In truth, there is no player or banker in the traditional sense. Both hands are handled by the dealer according to strict rules.

The reason why banker wins more in baccarat is because the banker acts second. The player’s hand is already resolved. And if the player has a 6 or 7, the banker will draw a third card in an attempt to beat the player. Also, if the banker has 3-7, the banker will draw another card in the overwhelming majority of scenarios. This responsive setup and the drawing rules themselves favor the banker slightly, resulting in this breakdown of outcomes:

  • 45.86% banker win
  • 44.62% player win
  • 9.52% tie.

Obviously, the smart bet is the banker, by a tiny margin.

Overhead view of a baccarat table with players placing chips on player and banker sections.

Why Is Baccarat Such a Popular Chinese Game?

If you’ve seen a casino in Macau, you know that baccarat is hugely popular with Chinese gamblers. High rollers will bet thousands on each hand. Why is this? Well, a few factors lead to the game’s popularity.

Baccarat’s enormous popularity in Chinese gambling culture is undeniable. Visit any casino in Macau, and you’ll see baccarat tables surrounded by high-rolling players betting thousands per hand. The reasons for its popularity include:

  • It’s simple. Baccarat has very straightforward betting. There’s no skill or strategy needed, so the barrier to entry is low.
  • Low house edge. The low house edge attracts people who want to make smart bets.
  • Culture. Many Chinese gamblers believe in luck and destiny, so a game that is pure luck is in line with these beliefs.
  • High stakes. For wealthy gamblers, many high limit tables are available offering this game. Massive sums can change hands in a long session of baccarat.

Does Baccarat Have the Lowest House Edge?

It’s up there. Or down there, depending on how you look at it.

  1. Video poker is surprisingly the king! The Jacks or Better version offers an edge as low as .46%.
  2. Blackjackis very close, with a house edge of .5%, presuming optimal play.
  3. Baccarat offers edges of 1.17% and 1.36% for the banker and player bets, respectively.
  4. Craps has a pass/don’t pass bet with an edge of 1.4%.
  5. Roulette (European) lets you play with an edge of 2.7%.
  6. Tri Card Poker sits around 3.4% when it comes to house edge.
  7. Let ’em Ride has a house edge of 3.50%.

The baccarat house edge is one of the most favorable you can find anywhere in the online casino world. If you want long sessions and good results, baccarat is a great game to put into your mix.

What Is the Best Strategy for Baccarat?

Since baccarat is a game of chance with no real strategy, you might think that there’s nothing to consider. There’s still a few helpful tips to keep in mind, though.

Bet on the banker

This bet has the best odds of winning. It’s a favorite of baccarat lovers.

Avoid the tie bet

The odds are poor. Only throw this bet in when you’re in the mood to chase a bigger win.

Keep an eye on your bankroll

Only bring a portion of your bankroll to the baccarat tables. If things don’t go your way, call it quits for the day. Don’t go on tilt.

Search for low commissions Remember how we said banker bets carry a commission? Some games feature lower commissions than others. Check the info section of the game to see which version is best.

Close-up of hands exchanging US dollar bills, with a warm orange glow in the background.

Why Do Casinos Charge a Commission on the Banker Bet?

The banker bet has a small advantage. For that reason, banker bets carry a (usually 5%) casino commission to offset the skewed baccarat player vs. banker odds. Otherwise, people would exclusively use this bet. This preserves a manageable house advantage and ensures that the game can run indefinitely.

Can Baccarat Be Beaten?

Not really. There isn’t a skill component that would enable you to be a consistent winner. That said, you can certainly have hot sessions. You can go on a winning streak with baccarat just like any other game. You can also use betting systems like the Martingale, where you double bets after you lose to recover. It’s a way to have fun and possibly profit, not a profession that can produce a reliable income.

What’s with James Bond and Baccarat?

James Bond and Baccarat have been linked since Ian Fleming’s first Bond novel, Casino Royale. In the book, Bond faces off against the villain Le Chiffre in a high-stakes baccarat game. In the 2006 movie of the same name, it was adapted into a poker game.

Baccarat also appears in Dr. No, Thunderball, GoldenEye, and The World Is Not Enough, among other Bond media.

Bond’s preference for baccarat (and casino games in general) marks him as a sophisticated and calculated risk-taker. The slow pace of the game and lack of player involvement also make for perfect opportunities to sip martinis and banter with other characters. It’s elegant, suave, and gives the director beautiful shots of those fancy rectangular plaque chips used for high denominations.

Baccarat is here to stay

Baccarat is a simple game that anyone can play. Its friendly odds have made it a classic. And although it may take a bit of time to understand the dealing rules, there’s no pressure on the player to make decisions. You can just make a bet and then watch the action play out. Online or off, baccarat is a hit that is here to stay for both newcomers and seasoned gamblers alike.

Want to give the game a shot? Learn to play baccarat for free right here at Ignition Casino.