Baccarat Commission Calculator
Baccarat dominates casino gaming in Asia and is the primary revenue driver at Kangwon Land, South Korea's only legal casino for Korean citizens, as well as the country's foreigner-only casinos. Understanding the mathematics behind baccarat—particularly the 5% commission on banker bets—is essential for anyone researching gambling or considering wagering activities.
This calculator helps you understand how commission affects your returns, compare all baccarat bet types, and see why side bets carry dramatically higher house edges than the main game.
Calculate Banker Bet Commission
The banker bet in baccarat charges a 5% commission on winning bets because the banker hand wins more often than the player hand. Use this calculator to understand exactly how commission affects your potential returns.
Commission Analysis
Compare All Baccarat Bets
Not all baccarat bets are created equal. The banker and player bets offer excellent odds, while tie bets and side bets dramatically increase the house advantage.
| Bet Type | Payout | Win Probability | House Edge | Rating |
|---|---|---|---|---|
| Banker (with 5% commission) | 0.95:1 | 45.86% | 1.06% | BEST |
| Player | 1:1 | 44.62% | 1.24% | GOOD |
| Tie | 8:1 | 9.52% | 14.36% | AVOID |
| Tie (9:1 payout) | 9:1 | 9.52% | 4.84% | POOR |
Why Does Banker Win More Often?
Baccarat's drawing rules give the banker hand a statistical advantage. The banker draws third based on what the player drew, effectively giving banker information that player doesn't have. This rule asymmetry causes banker to win 45.86% vs player's 44.62%. The 5% commission compensates for this advantage, keeping the house edge positive.
Expected Loss Per 100 Hands (₩100,000 bet)
| Bet Type | Total Wagered | Expected Loss | Loss Per Hour* |
|---|---|---|---|
| Banker | ₩10,000,000 | ₩106,000 | ₩74,200 |
| Player | ₩10,000,000 | ₩124,000 | ₩86,800 |
| Tie | ₩10,000,000 | ₩1,436,000 | ₩1,005,200 |
*Assuming 70 hands per hour at a live baccarat table
Side Bet House Edge Analysis
Baccarat side bets are designed to attract players with high payouts while carrying significantly higher house edges. These bets dramatically increase the casino's profit margin compared to main bets.
Warning: Side Bets Are Sucker Bets
While the main baccarat bets (banker/player) offer house edges around 1%, side bets typically have edges ranging from 5% to over 25%. These bets are engineered to exploit players' attraction to high payouts while providing substantially worse odds.
| Side Bet | Typical Payout | House Edge | Cost Multiplier vs Banker |
|---|---|---|---|
| Player Pair | 11:1 | 10.36% | 9.8x more expensive |
| Banker Pair | 11:1 | 10.36% | 9.8x more expensive |
| Either Pair | 5:1 | 14.54% | 13.7x more expensive |
| Perfect Pair | 25:1 | 13.03% | 12.3x more expensive |
| Big | 0.54:1 | 4.35% | 4.1x more expensive |
| Small | 1.5:1 | 5.27% | 5.0x more expensive |
| Dragon Bonus (Player) | Up to 30:1 | 2.65% | 2.5x more expensive |
| Dragon Bonus (Banker) | Up to 30:1 | 9.37% | 8.8x more expensive |
| Super 6 / Lucky 6 | 12:1 (2 cards) / 20:1 (3 cards) | 29.98% | 28.3x more expensive |
| Dragon 7 | 40:1 | 7.61% | 7.2x more expensive |
| Panda 8 | 25:1 | 10.19% | 9.6x more expensive |
Side Bet Expected Loss Calculator
Side Bet Cost Analysis
Understanding Baccarat Commission
The 5% commission on banker bets is one of the most misunderstood aspects of casino baccarat. Many players avoid the banker bet because of commission, believing the player bet offers better value. This is mathematically incorrect—the banker bet remains the best option despite commission.
According to research published by the UNLV International Gaming Institute, baccarat's drawing rules create an inherent advantage for the banker hand. Without commission, the banker bet would provide a player advantage of approximately 1.17%, making the game unprofitable for casinos. The 5% commission specifically compensates for this rule asymmetry.
How Baccarat Drawing Rules Favor Banker
In baccarat, the player hand always draws first (if required), and the banker's drawing decision depends on the player's third card. This "information advantage" is what gives the banker hand its statistical edge. The Encyclopedia Britannica notes that baccarat's asymmetric rules date back to the game's origins in 19th century France, though modern commission structures were developed to make the game viable for commercial casinos.
Baccarat Win Probabilities (8-Deck Shoe)
- Banker wins: 45.86% of hands
- Player wins: 44.62% of hands
- Tie: 9.52% of hands
The banker's 1.24 percentage point advantage over player is offset by the 5% commission, resulting in banker having a lower house edge (1.06%) than player (1.24%).
Why Baccarat Dominates Asian Casinos
Baccarat generates the majority of gaming revenue at casinos throughout Asia, including South Korea, Macau, Singapore, and the Philippines. At Kangwon Land, baccarat tables consistently produce the highest revenue per table of any game offered.
Several factors explain baccarat's dominance in Asian gaming markets, as documented by the National Institutes of Health research on Asian gambling patterns:
- Low house edge: The 1.06% and 1.24% house edges on banker and player bets respectively are among the lowest in any casino game
- Simple rules: No decisions required—players simply bet on banker, player, or tie
- High betting limits: Casinos accommodate high-stakes wagering desired by VIP players
- Cultural factors: Baccarat is associated with sophistication, luck, and ritual squeezing of cards
- Speed: Hands resolve quickly, allowing more bets per hour
No-Commission Baccarat Variants
Some casinos offer "no-commission" or "EZ Baccarat" variants that eliminate the 5% commission on banker wins. However, these games achieve profitability through modified rules that actually increase the house edge in most cases.
Common No-Commission Variants
| Variant | Rule Modification | Banker House Edge | Comparison |
|---|---|---|---|
| Super 6 / Lucky 6 | Banker wins with 6 pay 0.5:1 instead of 1:1 | 1.46% | 0.40% worse than standard |
| EZ Baccarat | Banker wins with 3-card 7 push instead of win | 1.02% | Slightly better than standard |
While EZ Baccarat technically offers marginally better odds for the banker bet, the Dragon 7 side bet (40:1 payout when banker wins with 3-card 7) carries a 7.61% house edge—significantly worse than the main game.
The Psychology of Baccarat Side Bets
Side bets in baccarat exploit several cognitive biases that affect gambling decision-making. Our Gambling Fallacy Analyzer explains these psychological factors in detail:
- Availability heuristic: Players remember dramatic pair wins more than routine losses
- High payout attraction: 11:1 or 25:1 payouts seem more exciting than 1:1
- Gambler's fallacy: Believing pairs are "due" after a streak without them
- Small bet rationalization: "It's only ₩10,000" ignores cumulative cost
Legal Context: Gambling in South Korea
Remember that gambling is largely illegal for Korean citizens. Kangwon Land is the only legal domestic casino option, and participating in offshore online gambling or underground gambling operations carries significant legal penalties under Articles 246-249 of the Korean Criminal Act. This calculator is for educational purposes only.
Baccarat and Korean Gambling Tourism
Many Korean gamblers travel abroad specifically to play baccarat at international casinos. As detailed in our gambling tourism article, destinations like Macau, the Philippines, and Singapore attract Korean VIP players with baccarat tables offering high limits and premium amenities.
Understanding baccarat mathematics is particularly relevant for Korean readers because:
- VIP gambling programs at foreign casinos specifically target Korean high-rollers
- Baccarat is the dominant game at Kangwon Land, generating the majority of its ₩1.5+ trillion annual revenue
- Foreigner-only casinos in Korea (Seven Luck, Paradise Casino) primarily cater to baccarat players
- Knowledge of house edge helps understand why gambling regulations exist to protect citizens
Using This Calculator Responsibly
This tool is designed for educational purposes—to help you understand the mathematics of baccarat rather than to encourage gambling. If you choose to gamble legally, understanding commission and house edge helps you:
- Make mathematically informed bet selections (banker over player, avoid tie and side bets)
- Calculate expected entertainment costs based on your wagering patterns
- Recognize that no betting system can overcome the house edge
- Set realistic expectations about gambling outcomes
For budget planning, use our Gambling Budget Calculator. To understand the long-term mathematical certainty of losses, explore our House Edge Calculator and Risk of Ruin Calculator.
Related Tools and Resources
- House Edge Calculator - Calculate expected losses for any casino game
- Probability Calculator - Understand true odds and expected value
- Bet Comparator - Compare different casino bets side-by-side
- Payout Analyzer - See how casino payouts compare to true odds
- Gambling Fallacy Analyzer - Identify cognitive biases in gambling decisions
- Problem Gambling Self-Assessment - Evaluate your gambling behavior
- Responsible Gambling Resources - Help and support information
Need Help?
If gambling is causing problems in your life, help is available. Contact the Korea Problem Gambling Agency at 1336 (24-hour helpline) or visit our responsible gambling resources page for treatment options and support services.