Commission is the 5% fee the casino collects on winnings from a Banker bet. This small deduction is essential for maintaining the house’s advantage, as the Banker hand has a statistically higher chance of winning compared to the Player hand. Without this commission, betting on the Banker would give players a slight edge over the casino. Understanding this “vigorish” or “vig” is fundamental to calculating your actual winnings and appreciating the game’s underlying mathematics.
The Core Reason: Countering the Banker’s Inherent Advantage
To understand why the commission exists, we must first accept a mathematical truth: the Banker hand is more likely to win than the Player hand. Due to the specific Third Card Drawing rules, which give the Banker a slight informational advantage, the Banker wins approximately 45.86% of the time, compared to the Player’s 44.62%.
Without a balancing mechanism, this would mean the Banker bet has a positive expectation for the player, giving them a ~1.24% edge over the house. No casino can sustain a game where players have a built-in advantage. The 5% commission is the casino’s elegant solution. It is not a penalty, but rather a carefully calculated fee that shifts the odds just enough to create the slim 1.06% house edge that makes the game profitable for the casino, while still being fair to the player.
The Impact on Your Winnings: How It’s Calculated and Collected
The commission directly affects the net profit you receive from a winning Banker bet. The calculation is simple:
Gross Winnings: Paid at 1:1.
Commission: 5% of the winnings (not the stake).
Net Payout: 0.95:1.
Let’s use a clear example:
You bet $100 on the Banker.
The Banker hand wins. Your gross winning is $100.
The casino collects a 5% commission on your winnings:
$100 * 0.05 = $5.Your net profit is
$100 - $5 = $95.The dealer returns your original $100 stake plus your $95 profit, for a total of $195.
To keep the game moving quickly, dealers at live tables often do not collect the commission after every single hand. Instead, they use small markers or tokens (called lammers) to keep a running tally of the commission owed by each player. This amount is then typically settled when a player decides to leave the table or when a new shoe is introduced.
The Birth of an Alternative: The Rise of No Commission Baccarat
While the commission is a mathematical necessity for the traditional game, it has a few downsides from a player’s perspective, which ultimately led to innovation.
The Player’s Perspective: Why Players Dislike the Commission
The friction caused by the commission is primarily psychological and logistical. Firstly, it feels like a tax on winning, which can dampen the excitement. Secondly, the calculations and the process of tracking owed commission can slow down the game and feel cumbersome for both players and dealers.
The Casino’s Innovation: How “No Commission” Works
Recognizing this friction, casinos developed “No Commission Baccarat” variations to offer a faster, seemingly simpler experience. They removed the 5% commission on Banker wins, making all Banker payouts a straightforward 1:1. However, to retain their mathematical advantage, they introduced a specific “catch” or a special rule that alters the payout in a specific scenario.
The “Catch”: Common No Commission Rules
This innovation gave rise to some of the most popular Baccarat variants today, each defined by its unique catch:
EZ Baccarat: In this version, the Banker bet is a “push” (the wager is returned, not paid) when the Banker wins with a three-card total of 7. This specific outcome is known as a Dragon 7.
Super 6 Baccarat: In this variant, if the Banker wins with a point total of 6, the winning bet is paid at only 0.5:1 (half the original wager) instead of the full 1:1.
Commission vs. No Commission: Which is Better?
On the surface, “No Commission” sounds like a better deal for the player. However, the “catch” in these games is carefully calculated to give the house an edge. In many cases, the house edge on the Banker bet in a No Commission variant is slightly higher than the 1.06% in the traditional game. For example, the house edge on a Banker bet in Super 6 is approximately 1.46%.
Therefore, while No Commission Baccarat offers a faster and simpler psychological experience, a player focused purely on the best possible odds is often better off playing the classic version and paying the 5% commission.
Conclusion: An Essential Rule for a Balanced Game
The 5% commission on Banker bets is not just an arbitrary fee; it is the fundamental balancing mechanism that makes Baccarat one of the fairest games in the casino. It is the mathematical key that allows the game to offer such a low house edge while remaining viable for the house. The player dissatisfaction with this rule spurred the creation of innovative No Commission formats, enriching the world of Baccarat with new ways to play. Understanding the commission is to understand the very economic soul of the game.