Dealer busting refers to a situation in blackjack where the dealer exceeds a total of 21, resulting in a loss for all players who did not also bust. This event is significant because it directly impacts player strategy. When players know that the dealer is at risk of busting, they may be more inclined to take risks with their own hands, such as hitting on lower totals, especially if the dealer shows a weak upcard (like a 4, 5, or 6). Understanding the likelihood of the dealer busting can inform decisions on when to stand or hit. Players often adjust their strategies based on the dealer's upcard and the remaining cards in play, aiming to maximize their chances of winning when the dealer is likely to bust.