Question by Robert: How do the casinos make money on Baccarat?
So, either the player wins, or the banker, and none of them lose money when a tie shows up. The odds of a banker and player showing up is almost equal, except the small 5% commission on banker. So, my question is that how is this game profitable for the casino? Basically, it seems to me that they are only profiting on the tie, and the 5% commission, because based on equal odds of player and banker, half of the players should win, and half should lose their bets in the long run [let's say in a sample of 1 million bets per year]. Someone clear things up for me please, because I think the 5% commission would never satiate the casino owners who are seeking to make big money out of these games.

Best answer:

Answer by Leafsfan29
So let’s review…let’s call it a built-in 5% house edge plus ties (which are sizable). Given how much money gets played by whales, that’s a sizable chunk.

You’re talking 5% of the total take. That’s huge.

If US$ 10mm gets wagered, the casino is keeping $ 500,000 (just on the commission), not counting ties. If $ 10mm gets wagered every week, that’s $ 26mm for the casino (and these are very conservative estimates, given that you’re talking close to $ 70-$ 90mm in total wagers on a typical day on all forms of gaming).

Plus, if you’re betting on the player and I’m betting on the banker…only one of us is winning.

Trust me…they’re doing very well.

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