Baccarat is hugely popular among gambling enthusiasts thanks to its leisurely pace, straightforward rules, and high winning odds. It was once reserved exclusively for nobility when it first emerged, but thankfully that is no longer the case. Baccarat is now accessible to players from all walks of life and available for real-money play at hundreds of online casinos.
One variation that has gained traction in recent years is no-commission baccarat, also known as commission-free baccarat. Its popularity is especially high among players from Asia, but it has a loyal following worldwide. This is partially due to its deceptive name, which leads players to believe it is better than traditional baccarat in which a commission applies. This is not the case in reality, and we explain why in today’s article.
| Drawing Rules in Commission-Free Baccarat Based on the Player’s Third Card |
| Banker Hand Total | Value of the Third Card Drawn to the Player Hand |
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
| 7 | S | S | S | S | S | S | S | S | S | S |
| 6 | S | S | S | S | S | S | H | H | S | S |
| 5 | S | S | S | S | H | H | H | H | S | S |
| 4 | S | S | H | H | H | H | H | H | S | S |
| 3 | H | H | H | H | H | H | H | H | S | H |
| 2 | H | H | H | H | H | H | H | H | H | H |
| 1 | H | H | H | H | H | H | H | H | H | H |
| 0 | H | H | H | H | H | H | H | H | H | H |
There is no need to memorize the drawing rules for Player and Banker. The dealer knows the drawing tableau inside out and will automatically complete the hands depending on their starting totals. The only decisions you face are how much to bet and whether to back Player, Banker, or Tie.
Paytables in Commission and No Commission Baccarat
This is where the main difference between commission and no commission baccarat lies. In the standard version of the game, the dealer deducts a 5% commission only from winning Banker wagers. The drawing rules give the Banker hand a slightly higher win frequency, meaning it wins more often than it loses.
Probabilities for the Banker Hand
Probabilities for the Player Hand
Banker Hand in No Commission Baccarat
Probabilities for the Banker Hand
After 1,000 rounds, Banker wagers will lose approximately 446 times and win 458 times, while the remaining 96 rounds result in ties. If you wager one dollar per round, you will collect $458 in winnings and lose $446. This results in $12 ($458 – $446) in net profit, provided that Banker pays at even money odds (1 to 1).
To offset this advantage, most standard baccarat games impose a 5% commission on winning Banker wagers, reducing the payout for this outcome from even money to 0.95 to 1. The reduction has a negative effect on the expected value for Banker bettors.
With the commission in place, you will generate average winnings of $458 x $0.95 = $435.10 after making 1,000 one-dollar bets on Banker and lose approximately $446. The commission therefore leads to a $10.90 shortfall for Banker bettors over the long run.
Probabilities for the Player Hand
In comparison, winning wagers on Player always pay at even money odds because the hand’s probabilities of losing and winning are reversed. The Player hand will win 446 times and lose 458 times every 1,000 rounds on average. Consequently, a gambler who wagers one dollar on Player can anticipate about $12 in net losses every 1,000 rounds.
Banker Hand in No Commission Baccarat
Under these circumstances, playing commission-free baccarat appears to be the logical choice, at least at first glance. However, casinos rely heavily on math and have once again devised a way to eliminate the statistical advantage the commission’s absence would give players. Examine the paytables below and you may notice where the issue with commission-free baccarat lies.
| Baccarat with Commission | Commission-Free Baccarat |
| Player Hand Wins | Banker Hand Wins | Tie/Player and Banker Push | Player Hand Wins | Banker Hand Wins with a Total of 6 | Banker Hand Wins with All Other Totals | Tie/Player and Banker Hands Push |
| 1 to 1 | 0.95 to 1 | 8 to 1 | 1 to 1 | 0.50 to 1 | 1 to 1 | 8 to 1 |
As you can see in the paytables above, no commission baccarat includes a payout reduction, and Banker hands that win with a total of 6 pay at odds of 0.50 to 1. Let’s examine how this affects the long-term expected value for gamblers.
A Banker win with a total of 6 occurs approximately 54 times every 1,000 hands on average. If you play 1,000 rounds, betting one dollar on Banker each time, you will collect half a dollar 54 times ($27), win a full dollar 404 times ($404), and lose a dollar 446 times (-$446).
This translates into $431 in winnings ($404 + $27) and results in $15 ($446 – $431) in theoretical losses in commission-free baccarat. In other words, you will lose $4.10 more on your Banker bets without the 5% fee.
Casino Advantage in Commission and No Commission Baccarat
You have probably guessed where this is going, so let’s examine how the absence of commission affects the house edge of the game. Because the commission applies only to winning Banker hands, it has no impact on the house edge of Player bets, which remains at 1.24%.
With the commission in place, the casino holds a 1.06% advantage on the Banker proposition in the standard version of the game. In contrast, the house edge for the Banker side climbs to 1.46% in commission-free variants, which corresponds to a 17% increase.
At conventional baccarat tables, the aggregate casino advantage is only 1.15%, while at no-commission tables it jumps to 1.35%. It follows that players are better off when they pay the commission, as they lose less money in the long run.
| House Edges in Commission and No Commission Baccarat Variations |
| With Commission | Without Commission |
| Player Side | Banker Side | Player Side | Banker Side |
| 1.24% | 1.06% | 1.24% | 1.46% |
| Aggregate House Edge: 1.15% | Aggregate House Edge: 1.35% |
Baccarat Players Hate Commission for All the Wrong Reasons
At this point, we hope it is clear why you should avoid commission-free baccarat variations. The term ‘commission-free’ is something of a misnomer, much like the ‘insurance’ side bet in blackjack, which carries a far higher house edge than the main game.
Such baccarat variants do provide a commission for the casino on certain winning hands, but the house simply collects it in a different fashion. Furthermore, the ‘fee’ is significantly higher at 50% because the payout for Banker wins with a total of 6 is drastically reduced. Contrary to logic, many players continue to frown on the idea of paying commission, but for all the wrong reasons.
How Commission-Free Variants Benefit the House
You may find it surprising, but gambling operators also dislike charging a commission. They prefer to drop the commission in favor of reduced payouts for Banker wins with 6, and there are several reasons for this.
In standard baccarat variations, the dealer deducts a 5% commission in approximately 46% of rounds because that is the Banker side’s average win rate.
Fewer Payout Errors on the Dealer’s Behalf
No Commission Means More Rounds Per Hour
Fewer Payout Errors on the Dealer’s Behalf
From the dealer’s perspective, deducting commission is a major nuisance. The busy casino environment makes it difficult because dealers must mentally calculate the 5% commission for various bet amounts.
They also need to make the correct change and handle multiple chip values in the process. Patrons often try to help by tossing chips onto the layout, which only creates more confusion.
Winning wagers on the Player side are much easier to settle because they always pay at even money odds, which occurs roughly 45% of the time.
Dealers in commission-free games avoid all these hassles. Without the 5% commission, even money payouts occur about 85% of the time, and only the remaining 15% of rounds require additional calculations.
Those calculations are simpler as well, as the dealer only has to deduct half of the winning wager on Banker wins with 6. Everyone will agree that figuring out 50% of 250, for example, is easier than deducting 5%.
No Commission Means More Rounds Per Hour
Baccarat is easily the slowest game on the casino floor. Rituals such as squeezing the cards and calculating commissions on certain winning hands further slow down the action, which is undesirable from the casino’s perspective. The more rounds players complete per hour, the more the house edge manifests.
As mentioned earlier, no commission baccarat moves faster because only 15% of all hands require complex calculations that slow the game. These are winning Banker hands on 6 or winning ties, and Tie bets are placed less frequently.
As a result, commission-free variants deliver nearly twice as many fast-paying hands as traditional baccarat. This increases the speed of the game by approximately 35%, meaning no commission tables perform better financially for the house.
