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# The House Edge in Baccarat Online Casino

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You are perhaps familiar with the drawing rules, card values, and payouts in baccarat if you are interested in how deck number affects your winning odds.

Let’s skip straight to the mathematics of baccarat and look into the probabilities of a standard eight-deck game with a 5% commission on Banker and even-money payouts on winning Player hands. Tie bets pay at standard odds of 8 to 1 when successful.

THE LIKELIHOOD OF OUTCOMES WITH TIES INCLUDED

Ties between Player and Banker occur approximately 9.51% of the time.

The Player hand wins approximately 44.62% of the time and loses the remaining 45.87% of the rounds.

The Banker hand is successful approximately 45.87% of the time and loses the remaining 44.62% of the rounds.

THE LIKELIHOOD OF OUTCOMES WITH TIES EXCLUDED

Ignoring the ties, the Player hand pays out roughly 49.32% of the time and loses the other 50.68% of the rounds.

The percentages are reversed for the Banker side as it pays out 50.68% of the rounds on average and loses 49.32% of the rounds.

You have surely noticed the winning probability of the Banker side exceeds fifty percent in the second case where we ignored the ties.

Casino operators offset this advantage by imposing a 5% commission on all winning Banker hands. Gamblers receive 95 cents per every dollar wagered on Banker. The bet thus yields a house edge that is nearly identical to that of the Player side.

When we know the probabilities of all three possible outcomes in the game, we can easily calculate their house edges.

All we have to do is multiply the winning probability by the wager and then add the losing probability multiplied by the losses to that result. The losses correspond to a negative expected value (EV), hence the minus sign. In turn, this negative EV reflects the house edge of a bet.

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