Baccarat is one of the simplest casino table games to learn. Despite its reputation as a high-roller game, the rules are straightforward and require no skill or complex decisions. You're essentially just choosing which of two hands you think will win. The game might seem intimidating if you've never played before, especially with its formal presentation and unique terminology. But once you understand the basics, you'll see that baccarat is easier than blackjack and far simpler than poker. This guide explains everything you need to know to start playing baccarat confidently. We'll cover how the game works, what bets you can make, how cards are valued, and what happens in each round.
What Is Baccarat?
Baccarat is a comparing card game where two hands are dealt: the "Player" hand and the "Banker" hand. You bet on which hand will have a total closest to 9.
Important clarification:Despite the names, you're not the "Player" and the dealer isn't the "Banker." These are just labels for two competing hands. You can bet on either hand (or on a tie). The dealer handles all the cards according to fixed rules. You make no decisions after placing your bet. This makes baccarat pure chance with no skill involved.
The Three Betting Options
Before any cards are dealt, you choose one of three bets:
Player Bet:You're betting the Player hand will be closer to 9 than the Banker hand. - Payout: 1:1 (even money) - House edge: 1.24%
Banker Bet:You're betting the Banker hand will be closer to 9 than the Player hand. - Payout: 1:1 minus 5% commission - House edge: 1.06%
Tie Bet:You're betting both hands will have the exact same total. - Payout: 8:1 (sometimes 9:1) - House edge: 14.36% (or higher)
Which bet is best?The Banker bet has the lowest house edge, making it the mathematically best choice. The Tie bet has terrible odds and should be avoided. For more on the math, see our guide on [baccarat odds and house edge](#).
How Card Values Work
Baccarat uses a unique card value system:
Card values:- Aces: Worth 1 - Cards 2-9: Face value - 10s, Jacks, Queens, Kings: Worth 0
Calculating hand totals:Add the card values together. If the total is 10 or higher, drop the first digit and use only the second digit.
Examples:- 7 + 5 = 12 → Hand value is 2 - 9 + 9 = 18 → Hand value is 8 - 3 + 4 = 7 → Hand value is 7 - King + 6 = 0 + 6 = 6 → Hand value is 6 The highest possible hand value is 9. This is called a "natural 9" when achieved with the first two cards.
How a Baccarat Round Works
Here's the step-by-step flow of a baccarat hand:
Step 1: Betting phasePlayers place bets on Player, Banker, or Tie (or combinations of these).
Step 2: Initial dealThe dealer deals two cards face-up to the Player hand and two cards face-up to the Banker hand.
Step 3: Check for naturalsIf either hand has a total of 8 or 9 with the first two cards (a "natural"), the round ends immediately. The hand with the higher natural wins. If both have the same natural, it's a tie.
Step 4: Player hand third card ruleIf the Player hand's total is 0-5, the Player hand receives a third card. If the Player hand's total is 6 or 7, it stands (no third card).
Step 5: Banker hand third card ruleThe Banker hand follows more complex rules based on the Player hand's third card (if any). These rules are handled automatically by the dealer.
Step 6: Determine winnerThe hand with a total closest to 9 wins. Winning bets are paid out according to the payout structure.
Important:You don't make any decisions during the hand. The dealer follows fixed rules for all draws. You simply watch and see if your bet wins.
The Third Card Rules (Dealer Handles This)
You don't need to memorize these rules — the dealer applies them automatically. But understanding them helps you follow the game.
Player hand third card rule:- Player total 0-5: Draws a third card - Player total 6-7: Stands - Player total 8-9: Stands (natural)
Banker hand third card rules:The Banker's action depends on the Banker's total and the Player's third card (if any): - Banker total 0-2: Always draws - Banker total 3: Draws unless Player's third card is 8 - Banker total 4: Draws if Player's third card is 2-7 - Banker total 5: Draws if Player's third card is 4-7 - Banker total 6: Draws if Player's third card is 6-7 - Banker total 7: Always stands - Banker total 8-9: Always stands (natural)
Don't worry about memorizing this. The dealer handles everything. Just know that there are fixed rules determining when each hand draws a third card.
Payouts and the Banker Commission
Player bet payout:If you bet $100 on Player and win, you receive $200 total ($100 original bet + $100 winnings).
Banker bet payout:If you bet $100 on Banker and win, you receive $195 total ($100 original bet + $95 winnings after 5% commission).
Why the commission?The Banker hand wins slightly more often than the Player hand (about 50.68% vs 49.32%) due to the third card rules. The 5% commission balances this advantage. Even with the commission, the Banker bet has a lower house edge (1.06%) than the Player bet (1.24%).
Tie bet payout:If you bet $100 on Tie and it wins, you receive $900 total ($100 original bet + $800 winnings at 8:1). Tie bets occur roughly 9.5% of the time, but the payout doesn't match the true odds, which creates the high house edge.
Commission-Free Baccarat
Some casinos offer "commission-free" baccarat where Banker bets pay 1:1 with no commission.
The catch:When the Banker wins with a total of 6, the payout is reduced to 1:2 (you only win $50 on a $100 bet instead of $100). This variation slightly increases the house edge on the Banker bet from 1.06% to about 1.46%, making it worse than standard baccarat.
Recommendation: Stick to standard baccarat with the 5% commission.
Common Baccarat Variations
Punto Banco:This is the standard version described in this guide. Most casinos call it simply "baccarat."
Chemin de Fer:A European variant where players take turns being the Banker and can make some decisions. Rare in modern casinos.
Baccarat Banque:Another European variant with different rules. Also rare.
Mini Baccarat:Same rules as standard baccarat but played on a smaller table with lower minimums. More accessible for casual players. Most online and physical casinos offer Punto Banco or Mini Baccarat.
Side Bets: Should You Take Them?
Many baccarat tables offer side bets like: - Player Pair (first two Player cards are a pair) - Banker Pair (first two Banker cards are a pair) - Perfect Pair (matching rank and suit) - Dragon Bonus (winning hand wins by a large margin)
The truth about side bets:They all have significantly higher house edges than the main game — typically 3-15% or more. They're designed to look exciting but are mathematically poor bets.
Recommendation: Stick to the Player or Banker bets. Avoid Tie and all side bets.
Playing Baccarat Safely
Baccarat is simple and has decent odds (on the Banker bet), but it's still gambling with a house edge.
Set a budgetDecide how much you're willing to spend before you play, and stop when you reach that limit.
Avoid chasing lossesIf you're losing, increasing bets or playing longer rarely helps. The house edge doesn't change based on recent results.
Stick to Banker or Player betsDon't be tempted by Tie bets or side bets with high payouts. The house edge on these is terrible.
Understand it's pure chanceThere's no skill or strategy in baccarat. Every hand is independent and random. Pattern tracking and betting systems don't work. For more on safe play, see our guide on [responsible gambling basics](#).
Baccarat Myths to Ignore
Myth: Tracking past results helps you predict future handsReality: Each hand is independent. Past results don't influence future outcomes. Many baccarat tables display recent results on scoreboards. These are for entertainment only — they don't help you predict what comes next.
Myth: Betting systems like Martingale workReality: No betting system overcomes the house edge. Progressive systems can drain your bankroll during losing streaks.
Myth: The casino can control outcomesReality: Licensed casinos use certified shuffling and dealing procedures. The game is random within the fixed rules. For more on myths, see our article on [baccarat strategies: what works and what doesn't](#).
Online vs Physical Baccarat
Both versions follow the same rules:
Physical casino baccarat:- Often has high minimum bets ($25-$100+) - More formal atmosphere - Real cards and dealer
Online baccarat:- Lower minimum bets ($1-$5) - Faster pace - Random number generator or live dealer options
Live dealer baccarat:- Real dealer streamed via video - Physical cards - Online convenience with real-game atmosphere All legitimate online baccarat games use certified systems to ensure fairness.