Why is commission only applied to winning Banker bets in baccarat?

[ProGambler]

The commission is only applied to winning Banker bets in Baccarat because the Banker bet carries a statistical advantage over the Player bet. The rules of Baccarat dictate that the Banker hand has a slightly higher probability of winning compared to the Player hand.

To compensate for this advantage and ensure that the casino maintains a small edge in the game, the commission is applied to the winnings on the Banker bet. By deducting a percentage of the winnings, the casino ensures that they earn revenue from successful Banker bets.

On the other hand, the Player bet does not carry the same statistical advantage as the Banker bet. It is a more straightforward bet where you wager on the Player hand winning. Since the Player bet is not inherently advantageous, there is no commission applied to the winnings on Player bets.

 

[CR7]

The commission in Baccarat is typically set at 5%, although it can vary from casino to casino. This means that if a player wins a Banker bet, they will be charged a 5% commission on their winnings. For example, if a player bets $100 on the Banker and it wins, they will receive a payout of $195 ($100 x 0.95), with $5 being deducted as commission.

The reason the commission is only applied to winning Banker bets and not to the Player bet is to maintain balance in the game. By charging a commission on the Banker bet, the casino ensures that there is a small house edge in place, which guarantees their profitability over the long run.

Without the commission, the Banker bet would have an even higher expected return than it already does, making it more favorable for players. This would create an imbalance in the game and potentially lead to significant losses for casinos. Therefore, applying the commission helps to offset the advantage of the Banker bet and maintain a fair and profitable game for the house.

It's worth noting that the commission is typically collected at the end of each shoe or a specific number of rounds, depending on the casino's rules. Additionally, not all casinos charge a commission on Banker bets, especially in certain Baccarat variations like EZ Baccarat, where the commission is replaced by specific rules to compensate for the advantage of the Banker bet.