Gambling terms, explained straight

Odds, Probability & Bankroll

Baccarat house edge

The baccarat house edge is the casino's built-in advantage on each wager, shown as the percentage of the stake the player expects to lose over time.

Banker bet edge
1.06% (eight-deck game) 1
Player bet edge
1.24% (eight-deck game) 1
Tie bet edge
14.36% at 8-to-1 payout; 4.85% at 9-to-1 payout 52
Super 6 banker edge
1.46% 53
Commission
5% on winning banker bets 6

Key points

  • The banker bet has the lowest house edge at 1.06%, making it the best wager in standard baccarat. 1
  • The player bet edge is 1.24%, slightly higher than the banker because no commission is charged. 1
  • The tie bet carries a steep 14.36% edge at the typical 8-to-1 payout, and should generally be avoided. 2
  • Variants like Super 6 and no-commission baccarat alter the banker edge through rule changes rather than a 5% commission. 53

House edge by bet type

Standard eight-deck baccarat house edges for the three main bets.
Bet House edge Payout
Banker1.06%1:1 (minus 5% commission)
Player1.24%1:1
Tie14.36%8:1
Tie (UK)4.85%9:1

How the house edge works in baccarat

The banker hand wins slightly more often than the player hand, so the casino charges a 5% commission on winning banker bets to keep its advantage. 6 The exact edge depends on the bet type and payout rule, which is why Banker, Player, and Tie each have different figures. 52

The house edge formula can be expressed as (t − a) / (t + 1), where t is the true odds and a is the actual odds paid. 4 This formula shows how a payout that is less than the true odds creates the casino's edge.

Where this term is used

Not the same as

Sources

  1. House Edge of Casino Games Compared wizardofodds.com Provides the standard house edge figures for banker, player, and tie bets in eight-deck baccarat.
  2. Baccarat Basics - Rules, Strategy, and Tips for Beginners wizardofodds.com Confirms the tie bet house edge at 8-to-1 payout and the banker bet edge in standard baccarat.
  3. Live Baccarat Dealer - Online Casinos wizardofodds.com Supplies the Super 6 banker edge and confirms standard banker/player edges.
  4. Baccarat - FAQ wizardofodds.com Provides the house edge formula (t − a) / (t + 1).
  5. Baccarat en.wikipedia.org Provides the UK tie payout edge and the Super 6 banker edge.
  6. Vigorish - Wikipedia en.wikipedia.org Defines the 5% commission on banker bets and the term cagnotte.

Sources are drawn from regulators, universities and published research, and each one is labelled with what it actually is — a preprint is not called a paper. Bookmaker and affiliate pages are never cited here, because a page that sells betting is not a neutral authority on it.