Standard commission baccarat is the classic casino version where winning Banker bets pay even money minus a 5% commission, usually written as a 0.95:1 net payout. The commission exists because Banker wins slightly more often than Player. With the commission applied, Banker remains the best main bet in most standard games, but it is still a negative-expectation wager.
Quick Facts
- Standard Banker wins usually pay 0.95 to 1 after commission.
- Player wins usually pay 1 to 1.
- Tie usually pays 8:1 or 9:1 depending on the table.
- Banker and Player bets usually push on Tie.
- Standard Banker house edge is about 1.06% after 5% commission.
- Player house edge is about 1.24%.
- Commission may be collected every winning Banker coup or tracked and collected later.
Plain Talk
In standard baccarat, the Banker side has a small mathematical advantage because of the drawing rules. Banker does not win every shoe, and it does not win every session, but over the full game math it wins slightly more often than Player.
The casino corrects that advantage by charging commission on winning Banker bets. A $100 Banker win does not usually pay $100 profit. It pays $95 profit. The missing $5 is the commission.
The Wizard of Odds baccarat basics page lists the standard Banker and Player house edges and explains the commission model. The Massachusetts baccarat rules include baccarat procedure and vigorish language from a regulated table-games context. For broader background on the casino form of the game, Britannica distinguishes modern house-banked punto banco from older forms where the bank role may pass among players.
This page is about the 5% commission version. For games that remove the commission and change the Banker rule, read no-commission baccarat and Super 6 baccarat. For the overall bet prices, use baccarat odds and baccarat house edge.
How It Works
The dealing rules are the same standard baccarat rules explained in baccarat rules. The difference is settlement on Banker wins.
| Result | Banker bet | Player bet | Tie bet |
|---|---|---|---|
| Banker wins | Wins, less 5% commission | Loses | Loses |
| Player wins | Loses | Wins even money | Loses |
| Tie | Pushes | Pushes | Wins at posted payout |
Banker commission examples
| Banker bet | Gross even-money win | 5% commission | Net profit |
|---|---|---|---|
| $20 | $20 | $1 | $19 |
| $25 | $25 | $1.25 | $23.75 |
| $100 | $100 | $5 | $95 |
| $500 | $500 | $25 | $475 |
Small-denomination tables may round commission or use commission markers. High-limit tables may track commission on a score sheet and collect it later. The local procedure matters.
Why commission exists
Without commission, the Banker bet would be too favorable compared with normal casino economics. Banker wins more often because it acts after seeing whether Player drew and, in some cases, the value of Player’s third card. The player does not control that. It is built into the third-card rule.
The commission trims that advantage back into a house edge.
Baccarat Table Example
You play a $50 standard commission baccarat table.
| Coup | Your bet | Result | Settlement |
|---|---|---|---|
| 1 | $50 Banker | Banker wins | Dealer pays $47.50 profit or tracks $2.50 commission |
| 2 | $50 Banker | Tie | Your bet pushes |
| 3 | $50 Player | Player wins | Dealer pays $50 profit |
| 4 | $50 Banker | Player wins | Dealer collects your $50 |
| 5 | $50 Tie at 8:1 | Tie | Dealer pays $400 profit |
The Tie win looks huge in this small example. That is why players remember it. But the long-run price of the Tie bet is usually much worse than Banker or Player. The commission on Banker is annoying, but it is not the main leak. The main leak is often leaving low-edge bets for high-edge excitement.
From the Casino Side:
Standard commission baccarat creates procedure work. The dealer must calculate commission, pay correctly, track unpaid commission if allowed, and avoid mixing commission markers with the player’s main stack.
The inspector or floor supervisor watches:
- correct Banker payout
- commission rounding rules
- unpaid commission tracking
- player disputes over commission owed
- correct treatment of Tie pushes
- no late removal of Banker bets after outcome
- accurate ratings for player action
In older large-table baccarat, commission tracking can be a major operational detail. In mini baccarat, the casino often prefers faster settlement and simpler chip handling. This is one reason no-commission variants became attractive: they reduce friction. They do not remove the house edge.
Surveillance looks for mispays, missed commission, player confusion, dealer fatigue, and collusion risk around high-limit chip movement. A small commission error repeated all night becomes real money.
Common Mistakes
- Thinking Banker pays exactly even money in a standard game.
- Forgetting that commission affects profit, not the return of the original bet.
- Assuming no-commission baccarat has the same math as standard baccarat.
- Treating Banker as guaranteed because it is mathematically best.
- Confusing Banker the betting side with a player banking the game.
- Ignoring unpaid commission until the dealer asks for it.
- Betting Tie to “avoid commission.”
Hard Truth
The 5% Banker commission is not a casino trick added to ruin a fair bet. It is the price adjustment that turns the strongest main bet back into a house-edge bet.
FAQ
What is standard commission baccarat?
It is baccarat where winning Banker bets pay even money minus a 5% commission. Player wins usually pay even money, and Tie has its posted payout.
Why does Banker pay less?
Banker wins slightly more often because of the drawing rules. The commission adjusts the payout so the casino keeps an edge.
Is Banker still the best bet after commission?
Usually yes. In standard baccarat, Banker still has a lower house edge than Player after the 5% commission.
When is commission collected?
It depends on table procedure. Some games collect it immediately. Some track commission and collect it later, especially at larger baccarat tables.
What happens to Banker on a Tie?
Banker bets usually push on a Tie. You do not win or lose the main Banker bet.
Is standard commission better than no-commission baccarat?
Often the standard Banker bet has a slightly lower house edge than common no-commission Banker 6 half-pay versions. Always compare the exact rules.
Deeper Insight
Commission baccarat is a clean example of casino pricing. The game is not balanced by changing the draw decisions. The drawing rules stay fixed. The pricing changes after the result, through a reduced Banker payout.
That matters because many players misunderstand where the edge lives. They think the casino edge comes from dealer judgment, secret shoe control, or a bad shuffle. In standard baccarat, the main edge is visible: Banker wins more often, then the casino pays Banker wins at 95% profit instead of 100%.
The result is a very low house edge by casino standards. Low does not mean harmless. A baccarat player making $200 Banker bets for 80 coups has $16,000 in total action. Even a 1.06% edge becomes meaningful at that volume.
Later math pages break this apart in commission math in baccarat and why 5% commission exists. For now, remember the core principle: commission is not optional math. It is the reason the Banker bet remains a casino bet.
Formula / Calculation
Net Banker Win = Stake × 0.95
Expected Loss = Total Banker Action × 0.0106
Example:
| Banker stake | Net win after commission | Approx. expected loss per bet |
|---|---|---|
| $25 | $23.75 | $0.27 |
| $100 | $95.00 | $1.06 |
| $500 | $475.00 | $5.30 |
Formula Explanation in Plain English
When you win a Banker bet, you keep your original stake and receive 95% of your stake as profit. Over time, the combination of Banker win frequency, Player losses, Tie pushes, and reduced Banker payout produces the house edge.
Related Reading
Use the baccarat guide for the full course map. Read baccarat payouts and baccarat house edge to compare standard commission with other formats. If a casino advertises “no commission,” read no-commission baccarat and Banker 6 half-pay math before assuming the offer is better. For cost testing, use the expected loss calculator.