What are the implications of the commission on banker wins in baccarat on long-term profitability for both the casino and the player?

[Killman2002]

The commission on banker wins (typically 5%) ensures that the house retains a profit despite the banker bet's favorable odds. Without this commission, the banker bet would have a house edge of less than 1%, which would be unsustainable for the casino in the long run. For players, this commission slightly reduces the profitability of the banker bet but does not eliminate its statistical advantage, making it still the optimal bet in terms of expected value.

 

[CR7]

The commission on banker wins in baccarat is a crucial mechanism that allows the casino to maintain its profitability over the long term. By charging a 5% commission on banker wins, the casino effectively skews the odds slightly in its favor, despite the fact that the banker bet inherently carries better odds compared to the player bet or tie bet.

From the casino's perspective, the commission on banker wins ensures that even when players bet on the banker and win, the casino still collects a portion of those winnings. This commission helps to offset the advantage that the banker bet naturally has over the player and tie bets. Without this commission, the banker bet would be too favorable for players, potentially leading to unsustainable losses for the casino in the long run.

On the other hand, for players, the commission on banker wins does reduce the overall profitability of the banker bet slightly. However, even with the 5% commission factored in, the banker bet remains the most advantageous option in terms of expected value. This means that, despite the commission, the banker bet is still statistically the best choice for players aiming to maximize their chances of winning in the long term.

In conclusion, the commission on banker wins in baccarat serves to balance the scales between the players and the casino, ensuring that both parties have a fair chance at winning while allowing the casino to maintain its profitability over time.