Baccarat is hugely popular among gambling buffs thanks to its leisurely pace, straightforward rules, and high winning chances. It was reserved exclusively for the nobility when it first emerged but thankfully this 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 higher among gamblers from Asia but it has a loyal following the world over. This is partially due to its deceptive name, which leads players to think it is better than conventional baccarat where the commission is in place. 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
Now, this is where the main difference between commission and no commission baccarat lies. In the standard version of the game, the dealer deducts the 5% commission only from winning Banker wagers. The drawing rules of the game are such that the Banker hand ends up with a slightly higher win frequency, i.e. 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 a thousand rounds, Banker wagers will lose approximately 446 times and win 458 times, while the remaining 96 rounds will produce ties. Assuming you wager a dollar per round, you will generate $458 in profits and lose $446. This makes for $12 ($458 – $446) in net winnings 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 payouts for this outcome from even money to 0.95 to 1. The reduction has a negative effect on the expected value of Banker bettors.
With the commission in place, you will generate average profits of $458 x $0.95 = $435.10 after making a thousand dollar bets on Banker and lose approximately $446. It turns out the commission leads to a $10.90 shortfall for Banker bettors over the long run.
Probabilities for the Player Hand
In the meantime, winning wagers on Player always pay at even money odds because the hand’s probabilities of losing and winning are reversed. It will win 446 times and lose 458 times every thousand rounds on average. It follows that a gambler who wagers a dollar on Player can anticipate $12 in net losses on average every thousand rounds.
Banker Hand in No Commission Baccarat
Under these circumstances, the logical thing to do would be to play commission-free baccarat, at least at first glance. However, casinos rely heavily on math and have yet again come up with a way to destroy the statistical advantage the commission’s absence would give to players. Examine the paytables below and perhaps you will 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 clearly see in the paytables above, there is a payout reduction in no commission baccarat as well as 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 of gamblers.
The Banker win with a total of 6 happens approximately 54 times every thousand hands on average. If you play a thousand rounds betting a 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 profits of $431 ($404 + $27) and $15 ($446 – $431) in theoretical losses in commission-free baccarat. It turns out you will lose $4.10 more from 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. Since the commission only applies to winning Banker hands, it has no impact on the house edge of Player bets – it remains the same 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.
Respectively, the aggregate casino advantage in conventional baccarat is only 1.15%, while that at no commission tables jumps to 1.35%. It follows that players are better off when they pay the commission as they still end up losing less money in the long term.
| 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 Commision for All the Wrong Reasons
At this point, we hope it is clear why you should avoid playing commission-free baccarat variations. The term ‘commission-free’ is somewhat of a misnomer, much like the name of the ‘insurance’ side bet in blackjack which also carries an enormous house edge compared to that in 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% due to the severe reduction in the payout for Banker wins with 6. Contrary to all logic, many players continue to frown at the idea of paying commission but for all the wrong reasons.
How Commission-Free Variants Benefit the House
Perhaps you will find it surprising but gambling operators also frown at the idea of charging a commission. There are several reasons why they prefer to drop the commission in favor of the payout reduction for Banker wins with 6.
In standard baccarat variations, the dealer will deduct the 5% commission on approximately 46% of the rounds as this is the average win percentage of the Banker side.
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 perspective of baccarat dealers, commission deduction is a major nuisance. It is difficult to carry out in the busy casino environment because it requires the dealer to mentally work out the 5% calculation for various bet amounts.
Respectively, the dealer must make the correct change and handle multiple chip values in the process. Patrons often attempt to assist the dealer in rounding out the payouts by throwing chips on the layout which only results in further confusion.
Winning wagers on the Player proposition are far easier to settle as they always pay at even money odds, which happens approximately 45% of the time.
Dealers in commission-free variations of the game are spared from going through all these hassles. Without the 5% commission, even money payouts will occur approximately 85% of the time and only the remaining 15% of rounds will require additional calculations.
What is more, said calculations are much simpler as the dealer only has to deduct half of the winning wager on Banker wins with 6. Everyone will agree calculating 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 in terms of pace. Rituals like squeezing the cards and commission calculations on certain winning hands further slow down the action, which is bad from the casinos’ perspective. This is because the more rounds players go through per hour, the more the casino’s statistical advantage begins to manifest itself.
As we mentioned earlier, no commission baccarat plays at a faster pace because only 15% of all hands dealt call for more complex calculations that slow down the action. These are either winning Banker hands on 6 or winning ties. However, Tie spots are not played as frequently.
In conclusion, commission-free variants deliver nearly twice as many fast-paying hands compared to traditional baccarat. This increases the speed of the game by approximately 35%, which means no commission tables perform better financially with respect to the house edge.
