Baccarat 101: Rules, Odds, Strategies, and Popular Variants

One of the oldest games still available in modern casinos, baccarat has a certain elegant feel wherever it is played. No wonder it was the game James Bond played in Ian Fleming’s first novel, Casino Royale; they only changed it to Texas Hold’em poker in the 2006 movie adaptation starring Daniel Craig.

But beyond its deep roots and glamour, baccarat is also a very strategic game, and unlike most casino games, it offers surprisingly good odds against the house for those who are willing to learn.

In our comprehensive guide, we aim to walk you through the game’s astonishingly rich history, familiarize you with the rules, including deep game mechanics, popular variants of the classic game, and share a few basic baccarat strategies to help you get started.

No matter if you are just curious about the game or have already tried your luck with it in the past, our guide will give you an advantage over those who just sit down at the tables with their drinks, completely oblivious to what baccarat really is.

A Brief History of Baccarat

Divination & the Magic Number 9

According to historians, baccarat’s earliest predecessor can be traced back to the Etruscan civilization’s rule in Italy in 900 BC, even before the Roman Empire.

The priests of the Etruscan civilization had a specific ritual for divination, a sacral rite with which they determined the fate of a young virgin woman.

Legend has it that the virgin had to roll a die with nine sides: if she rolled a nine or an eight, she would become a priestess; if she rolled a seven or a six, she would be exiled from religion; and if she rolled five or below, he would have to walk right into the sea and drown.

Not a very fun game, is it? With terrible odds, too! Luckily, later on, Italian card games retained from this ritual the special role of the number nine, just like in modern baccarat.

The Game of Merchant Princes & Aristocrats

The earliest game similar to modern baccarat is usually credited to a Renaissance gambler, Felix Falguiere, who lived in Italy in the 15th century. Modern playing cards were not standard back then, so they played with tarot cards.

The name ‘baccarat’ itself comes from the old Italian word ‘baccara’, which means ‘zero’. This refers to the game’s point system, where cards from 10 to the King are worth zero points.

Falguiere’s version of the game became popular quickly among the nobles of Venice and Florence, where there were many gambling houses.

Chemin de Fer

Baccarat spread to neighboring France in the late 1400s, where it evolved into ‘Chemin de Fer’ or ‘railway’, played by the local aristocracy. In this version, players took turns playing as the banker, which added an extra layer of strategy to the game. No wonder it became King Charles VIII's favorite pastime!

Baccarat saw another huge boom in popularity among the French upper class in the 19th century. They played in private salons, often at high stakes and with very strict etiquette.

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Crossing Continents

Baccarat flew through the Atlantic Ocean in the 1950s, emerging as ‘Punto Banco’ in Havana, the Capital of Cuba. In this simplified version, the casino acted as the bank in every round.

Not long after, casino operator Tommy Renzoni took this game to the Sands Casino in Las Vegas, where it became the favourite of high rollers.

Today, the baccarat capital of the world is the ‘Las Vegas of the East’, Macau. Over 80 percent of casino revenues come from the game, largely thanks to high-stakes players from mainland China, who often play hands worth more than a million dollars.

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How to Play Baccarat: Rules, Bets, and Payouts

In baccarat, players bet on which of the two hands will win: the player's or ‘punto’, the banker's or ‘banco’. Betting on a tie is also possible, but it is very risky. In the end, the hand closest to 9 total points wins.

The betting takes place before the cards are dealt. Betting on the player pays 1:1, betting on the banker pays 1:1 minus 5 percent commission, and ties usually pay 8:1 or 9:1.

Both the player and the banker are dealt two cards, which are face-up in casinos but can also be face-down in some VIP rooms. In poker, only the players can see the cards by lifting them up.

This is where the rules might get a bit confusing, so pay careful attention.

Third Card Rule

Depending on fixed rules, a third card might be dealt, meaning that the player has no choice here.

The third card is dealt based on the total point value of the hand: Aces are worth 1 point, numbered cards from 2 to 9 are worth their face value, and cards from 10 to King are worth 0.

If a hand's points total 10 or more, only the last digit counts; for example, if the total is 15, it is only worth 5 points.

If the player’s hand is worth 5 points or less, the player gets dealt a third card.

If the player’s hand is worth 6 or 7 points, he draws no more cards and stands.

If the player’s hand is worth 8 or 9 (a natural), he wins automatically, unless the banker also has 8 or 9 points. If both have naturals, the higher one wins; otherwise, it's a tie.

The banker’s move depends on the player’s third card, assuming he got one:

For example, if the player has ♠3 and 4♥, he has 7 points, so he stands and gets no more cards. The banker has K♦ and 2♣; he has 2 points, so he has to draw a third card. He draws 7♠, bringing his total to 9, beating the player because he got closer to 9.

After the hands are evaluated, payouts are made. In case of a tie, bets on the player or the banker push, meaning that they get returned with no profit or loss.

As players only have a choice when they bet at the beginning of each round, casinos usually automate everything else, so players don’t have to memorize this quite complicated system.

Betting Options & Odds

In traditional baccarat, you can only bet on player, banker, or a tie, but today, many casinos offer different optional side bets.

Here is a breakdown of the classic bets and the most popular side bets available at casinos:

Baccarat Variants

There is more to the game of baccarat than the traditional and the American versions; in fact, new variants are introduced from time to time, especially in online casinos.

Let’s take a look at some of the most popular versions, as well as lesser-known ones.

Punto Banco

This is the most popular form of baccarat, played almost everywhere around the world. In Punto Banco, the casino always takes on the role of banker, and players have no decisions apart from betting.

Punto Banco is recommended for beginners and those who prefer simplicity over complex games.

Chemin de Fer

Chemin de Fer is the classic French version of baccarat, in which players can also serve as banker and decide whether to draw a third card.

Players who enjoy more complex decision-making, such as in poker, might prefer Chemin de Fer over Punto Banco.

Baccarat Banque

Baccarat Banque is often played in private clubs in Europe. It is played with three decks of cards and a single player as the banker, who remains until he quits.

It is best for players who are willing to wager larger sums of money and are resilient enough to play long baccarat sessions.

EZ Baccarat

In EZ Baccarat, bets on the banker pay 1:1 without commission, and Dragon 7 and Panda 8 side bets are also allowed.

This simplified baccarat game suits those who despise commissions but are willing to accept worse odds to avoid the dreaded fee.

Key Differences

Basic Baccarat Strategies & Tips

While luck plays a role in baccarat, strategy is very important. Let’s take a look at some fundamental strategies to get you started!

If you want the best odds without learning a whole betting system, always bet on the banker. With that bet, the casino has only a 1.06 percent edge compared to the 1.24 percent edge of a player bet.

Also, you should never bet on a tie, because the house has a 14.4 percent edge, which is by far the worst odds any casino game has.

Additionally, you should ignore the illusion of patterns: each hand in baccarat is independent, so no hot or cold streaks exist.

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1. The Martingale System

The Martingale System is a very aggressive strategy in which you double your bet after every loss.

With this system, you can quickly recover your losses, but it is also risky, for a long losing streak can wipe out your entire bankroll.

2. The Fibonacci System

The Fibonacci System is a mathematical strategy in which you bet on the following Fibonacci sequence: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, etc.

Start with the first few numbers, then move one step forward in the sequence when you lose and two steps back when you win.

Due to its gradual progression, this system leads to slower losses than the Martingale System, but requires much more patience.

3. The D’Alembert System

The D’Alembert System is for more conservative players. In this system, you increase your bet by one unit after a loss and decrease it by one unit after a win.

This system is less volatile than the Martingale System, but its profits are also smaller.

4. Reverse Martingale

The Reverse Martingale, or Paroli System, is quite special because players double their bets not after losses but after wins and reset after losses.

This strategy capitalizes on hot streaks, a double-edged sword, and only works on a winning streak.

How to Get Started with Baccarat

If you have reached this far in our article, you should already know that in baccarat, the house always has an edge, but if you understand the game’s mechanics, you can still choose your bets in a way that you get the best possible odds.

If you feel you are ready, check out our best online casino that offers baccarat tables, with some also offering live casino games that mimic the atmosphere of a real casino by streaming real croupiers.