House in playing Baccarat

Which is more advantageous to the House in playing Baccarat?

Each time the banker wins they deduct a 5% commission? or every time a banker wins by a six they reduce the winnings by half? Please give a mathematical explanation…thanks!
Note:
You can bet to the banker or to the player. The odds for the banker to win is 50.6% and for a player it is 49.4% not including ties..
And the chances a banker win by a six is 1 out of 13 deals..

Question asked by: kim z

Answer

In baccarat, the house advantage is determined by the commission charged on banker bets or the reduction in winnings when a banker wins by a six. Let’s take a look at the mathematics of each scenario.

In the first scenario, the house charges a 5% commission on all banker bets that win. Let’s assume a player bets $100 on the banker, and the banker wins. The payout would be $195 ($200 – $5 commission). The actual probability of the banker winning is around 50.6%, which means that the house has an edge of around 1.06% (50.6% – 49.4%) on each bet. This commission system is the most common one in use.

In the second scenario, the house reduces the payout on banker bets when the banker wins with a six. This reduction can vary from casino to casino, but let’s assume that the payout is reduced by half. If a player bets $100 on the banker and the banker wins with a six, the payout would be $50 ($100/2). The actual probability of the banker winning with a six is around 7.7% (1/13), which means that the house has an edge of around 1.23% (50.6% x 0.077) on each bet.

Based on the mathematics, the first scenario where the house charges a 5% commission on all banker bets that win is more advantageous to the house. The house edge is lower (1.06%) compared to the second scenario (1.23%) where the payout is reduced by half when the banker wins with a six.

It is important to note that while the house edge is lower in the first scenario, it does not necessarily mean that players are more likely to win. Baccarat is a game of chance, and the outcome of each hand is completely independent of the previous hand. It is important to play responsibly, set a budget, and enjoy the game for what it is.