If it was possible for you to decide what the House edge in all casino games should be, I am sure you would like it to be zero or even less. Obviously, that is not going to happen. The House must be certain that they have an edge over their players, otherwise the casino would start losing money real soon.
Bearing that in mind you can choose to put your money at stake at a lower edge than other players. Virtually all casino games allow you to do this.
The edge in baccarat is determined by the banker’s ability to decide what to do after he or she counts your final total. This gives you an increased change of drawing a winning hand. Because of that the banker has a slight advantage.
What is interesting though, is that players in baccarat have the possibility to bet on the banker’s hand. Normally, this would give an edge to the player, but the casino rules state that the player is obliged to pay 5% commission on any winning banker bets. Moreover, a tie pays 8-to-1.
Because the chances of a tie longer than 9-to-1, this bet, although it looks tempting, actually gives the House an edge of 14.36 percent while betting on the player gives the House an edge of only 1.24 percent. The banker has an advantage, but with the 5% commission included, a banker bet provides the House with an edge of 1.06 percent.
In order to decide what the House edge in baccarat is, you just have to choose to bet on the banker every time. To put it simply, you get a choice in every baccarat hand and you can decide whether you want a 1.24 percent edge or a 1.06 percent edge in favor of the House.
The answer is clear. A 1.06 percent edge grants better chances to the player, therefore you should always pick this one. Betting on the banker every time gives you the best chance to succeed.