What is Baccarat and how the game works

Published: Feb 4, 2026 02:14

by Nicola Davidson

19 min read

Ever played online Baccarat before? If you’re new to online gambling as a whole, we’re going to go out on a limb and guess that it’s not a game you’ve tried yet. Why would we think that? Because of its reputation as a game suited to high rollers and VIPs, it can seem a little intimidating. Especially if you’re still finding your feet at the casino.

Here’s the thing, though. Baccarat’s reputation as an “elite players only” type of game needs to be studied. Because while it’s true that it may have started that way, these days it’s just as accessible and player-friendly as any other casino game. It’s simple to learn, easy to play. And there’s very little decision-making needed. Which actually makes it ideal for beginners.

So, you could say that Baccarat is suffering from something of a reputation problem. Which is why we’re here. To break down barriers. Introduce you to one of the gambling greats, and help familiarize you with a game that you might just end up loving. Join us as we break the game down, look at how to play it, how to become successful at it. And how to feel confident when you’re at the Baccarat tables. You’ll be a pro in no time!

A brief history of Baccarat

Prepare to be mystified, because the origins of Baccarat are unclear, perhaps lost forever in the annals of time. Some claim the game is invented in 1500s Italy, while others believe its origins are much later, in the 19th century. Yet more historians trace its roots to 17th century Asia, derived from the Eastern game Macao, which sailors took back to the West with them and eventually evolved into the version of Baccarat that we know today.

So where did Baccarat’s association with royalty and exclusivity come from? Following its legendary popularity in Europe in the 18th century, which eventually leads to it being declared illegal, Baccarat becomes a firm favourite of the French nobility in the 19th century, played in private gaming rooms before casinos are declared legal. With the earliest known form of Baccarat being Baccarat Banque, other variations such as Chemin de Fer and Punto Banco soon developed as well, with new rules and a new audience to match.

Where Baccarat Began: From Royal Courts to Online Casinos

While Baccarat remained popular among the aristocracy, it eventually caught the attention of the USA, appearing in New Jersey as early as 1871. By the 1950s, Baccarat (or more specifically, Punto Banco) had moved to Cuba, where it sparked the interest of one Tommy Renzoni. Captivated by the game, Renzoni brought it to Las Vegas.

While Vegas Baccarat got off to a somewhat rocky start, it eventually found its feet, became a casino staple, and transformed into the modern game we all know and love today. And while it’s still just as popular at brick-and-mortar casinos as ever, its evolution into an online game has made it even more accessible, opening it to a new world of players. And new heights of status and fame. So with all that to take in and absorb, there’s really only one question to ask: when will you be playing?

What does playing Baccarat involve?

Ok, we know this – before we can convince you to give online Baccarat a try, we need to at least take you through what a game actually involves. So here we go.

We’ve already mentioned that Baccarat’s appeal lies in its simplicity, but we didn’t tell you exactly what that means. Well, we’re telling you now. In order to play Baccarat, all you need to do is make one single decision. That’s it. Once you’ve made that decision, you can sit back and let the house take care of everything else. It’s pure gaming bliss!

So, what’s the decision you need to make? Just this. A decision as to what you think the outcome of the game will be. Because that’s all that Baccarat is at its heart. A game of outcomes, with you choosing which one you think will prevail.

Every game of Baccarat has three potential outcomes. Whether one of two different hands, the Player or the Banker, will win, or whether there will be a Tie between them. That’s literally it. Once you’ve placed your bet, you can relax and enjoy the game. There’s no complex strategy to learn and no technical skills to acquire.

How a Baccarat game works

Now that you know the basic premise of Baccarat, it’s time to take you through the order of an actual game so that you know what to expect.

Typically, a game of Baccarat uses 6 to 8 standard decks of cards shuffled together. Once you’re ready to play, you’ll choose your bet size and the game will follow a specific sequence:

You get the option of betting on either the Player’s or Banker’s hand, or a Tie.
Once you’ve placed your bet, two cards will be dealt to both the Player and Banker hands, face up.
Depending on the total card values of each hand, a third card may be dealt (more about this later).
Whichever hand has a value closest to 9 is the winner; alternatively, if both hands have identical values, a Tie will be declared.
All winning bets will be paid out and a new round will begin.

That’s it! There’s no need to choose whether you want to hit, stand or double down, and you’re not facing off against either competitors or the dealer. It’s just you, the cards, and a single bet choice. You’ve got this covered!

Baccarat card values

Ok but where’s the catch. Surely Baccarat can’t be THAT easy, right? There must be something, somewhere that makes it stand out from the crowd? Well, yes and no. Baccarat is exactly as simple as we’ve said – just choose your preferred outcome and find out what fate has in store for you. But there is one area that’s a little different from other card games which might take you a little time to familiarise yourself with – the card values.

Wait, what? Surely a 2 is just a 2? Mm, sort of. While in games like Blackjack and Poker, cards are usually worth their face value, in Baccarat things are a little different. Let’s take a closer look:

Cards between 2 and 9 – worth their face value
Aces – worth 1
10s and face cards – worth 0

That’s not all. If a hand of cards adds up to a double digit, such as 12, the first digit is automatically removed, leaving the second as the total card hand value. Which in this example is 2.

Ok but is that good or bad? In Baccarat, the goal is to have a card hand value as close to 9 as possible. So hands of 8 or 9 are the most valuable, and are known as ‘natural’ wins.

We know, it sounds a little confusing at first. But once you master the card value system and get used to dropping the first digit from the total hand value, you’ll have it down. And the best part is that the house does all the calculating for you, so you can learn as you go. No complicated maths needed here – just enthusiasm!

The third card rule

We said we’d get to it later, and we always keep our promises! So, what is this mysterious ‘third card rule’, and how exactly does it work?

As we mentioned, if neither the Player nor the Banker has a natural, a third card may be drawn under certain circumstances. There’s no need for you to memorize what these are, as they can become complicated. The good news is that they’re fixed and automatic, and taken care of by the house.

But, it may interest you to know what goes on behind the scenes and why, so here’s a quick breakdown:

If the Player’s hand is worth 6 or 7, there’s no need for a third card to be drawn, and the hand will stand as is.
If, however, the Player’s hand adds up to 5 or less, one further card will be dealt.
The Banker’s hand adds up to 0, 1 or 2, another card will be dealt to the hand automatically.
If the Banker’s hand totals between 3 and 7, another card will only be dealt if the Player’s hand was dealt another card, and depending on what the new value of the Player’s hand comes to.

Told you it was a little complicated! That’s not for you to stress about, though. You’ll never need to make any kind of decision in Baccarat other than your choice of bet right at the beginning. Third card, no third card. All of this will be taken care of for you by the casino. So your only job is to sit back and enjoy. Think you can handle that?

Baccarat betting options broken down

With that in mind, since your only task is to select a bet right at the beginning of the game, let’s give you all the information you need about each type of bet, so you can make the best decision possible.

As we’ve already said, there are three main types of bets in Baccarat. Each one with its own risk level, house edge, and payout attached:

The Player bet

If the Player hand has a card value closest to 9, you’ll win.
A winning Player bet pays out at 1:1.
The house edge on the Player bet is relatively low, standing at just 1.24%.

The Banker bet

You’ll win if the Banker hand finishes closer to 9 than the Player.
A winning Banker bet pays out at 1:1, minus a small commission (usually 5%).
The house edge on the Banker bet is the lowest in the game, at just 1.06%.

The Tie bet

You’ll win if both the Player and the Banker hands finish the round with the same total.
A winning Tie bet pays out at 8:1 or 9:1, depending on the casino.
The house edge on the Tie bet is significantly higher, standing at 14.4%.

So, what does this really mean?

The Banker bet remains the safest bet in the game. This is because the third card rule subtly favours the Banker bet over the Player bet, which is why the house takes a small commission from Banker wins in order to balance this advantage. Even so, the Banker bet still has the lowest house edge in the game.
Although the house edge on the Player bet is marginally higher, it’s still a viable option for you to take, so don’t discount it immediately.
The Tie bet is a tempting choice based on its payout, but a far riskier option. Keep your bankroll in mind at all times and remember your number one goal: to have fun while managing your finances responsibly!

Popular Baccarat variations

Now that we’ve taken you through the basics of classic Baccarat, it’s time to branch out a

little to some of the other variations available online. Each of them has its own set of rules, payouts and gameplay speed. Try them out and see which of them suits your playing style and your bankroll best.

Punto Banco

Don’t let a fancy name intimidate you. If you’re playing Punto Banco, you’re pretty much just playing standard Baccarat, as Punto Banco is the most common version of the game, and the one you’re most likely to encounter in online casinos. ‘Punto’ means Player. ‘Banco’ means Banker. So it’s literally right there in the name!

We’ve already run you through the order of play and how the game works, so there’s no need to go over it again. What we will do, however, is tell you why Punto Banco is the ideal choice for beginners:

The rules are simple, consistent and predictable – no complicated strategies to learn.
There’s no pressure to make any gameplay decisions – the house will take care of everything for you.
Bets are clearly highlighted, totals are calculated automatically, and past results display conveniently.
It offers one of the lowest house edges in the casino, making it a safer option than riskier games like slots or Keno.

So if you’re new to Baccarat as a whole, start your journey with Punto Banco and see where the game takes you!

Mini Baccarat

Want to test the Baccarat waters but with even lower stakes? Then start small with Mini Baccarat!

It’s essentially Punto Banco, but the tables are smaller, the bets are lower. And, the gameplay is a lot quicker. Because of its casual nature, it’s a popular choice among beginner players online. And, it promises a more informal, relaxed gambling experience.

All the rules are identical to traditional Punto Banco, but with a smaller table and fewer players, the action moves a lot faster. Upping the adrenaline and the excitement factor, too. Try it for yourself and see – Mini Baccarat, major thrills!

Chemin de Fer

If you’re enjoying Punto Banco but looking for more of a challenge, you might want to try Chemin de Fer. A variation that’s more social and more strategic (but not found online often, so keep a sharp eye out).

As one of the oldest forms of Baccarat, and the choice of James Bond himself, Chemin de Fer has one striking difference from the Punto Banco variation – player decision-making! That’s right. If you’re ready to get in the game and make some choices for yourself, Chemin de Fer is the way forward.

That’s because in this version of Baccarat, players take turns acting as the Banker. With the remaining players making choices about drawing a third card. The Banker role then rotates between the players with every subsequent game, with the other players placing bets against the active Banker.

While this version takes some getting used to if all you’re familiar with is Punto Banco, it’s a rewarding variation that’s worth a try. It’s more social, more interactive, and slower-paced as well, giving you more time to think about the decisions you want to make. You can find it in private gaming rooms or VIP casino areas rather than online. When you do spot it, give it a go. It could be just the challenge you’ve been looking for!

Baccarat Banque

Remember how we said that Baccarat Banque was one of the earliest known versions of Baccarat? It’s also one of the most niche and hard-to-find as well. But if you do come across it, it’s worth learning how to play, so here’s a quick breakdown!

Similar to Chemin de Fer, Baccarat Banque also involves a player acting as Banker, although this time the position doesn’t rotate amongst the players – it stays fixed for the entire shoe. Whoever is selected as the Banker typically covers the entire stake, with all other players betting against them. In this way, Baccarat Banque is more structured than Chemin de Fer, and often less accessible for beginners. Get some experience under your belt first, and then try your hand at it – a European casino is likely your best bet.

Live dealer Baccarat

You’re probably no stranger to the live dealer concept, but have you tried it out before, specifically with Baccarat? If not, you’re in for a real treat! Get ready for a genuine casino experience right from the comfort of your own home. Completely immersive and completely entertaining too!

Bridging the gap between brick-and-mortar and online casinos, live dealer play features an actual croupier in a genuine casino environment, with the action brought to you in real time by streaming video. Sit down to a game of Baccarat, and you’ll have a real live dealer in front of you. And while you’ll be placing your bets digitally, the dealer will be using physical cards to play the game. With outcomes displayed in real time.

So if you love the convenience of online play, but want more of an authentic casino experience, try live dealer Baccarat out for size. It’ll feature the same rules as Punto Banco, so you’ll know what to expect. And you’ll be able to enjoy a social element by chatting to the dealer and your competitors, too. Real casino excitement, real Baccarat play, real-time winnings!

Common Baccarat side bets

Want to add a little extra excitement to your Baccarat play? Then why not try out a side bet!

Side bets in Baccarat are optional wagers that sit alongside the main Player, Banker, and Tie bets, and they’re there for one specific reason only. To add variety and exhilaration to the game!

One thing, though. While side bets may seem tempting because they offer higher payouts, keep in mind that this comes in exchange for a lower chance of winning. So while you have the potential to win more, you’re also less likely to win as well. This is how the house balances things out. So don’t think of side bets as part of your core betting strategy. Rather, look at them as an occasional extra instead.

Here’s a quick look at some of the various side bets available, if you want to take a chance on any of them:

Player and Banker Pairs: In these side bets, you’ll be betting on whether the first two cards of either the Player or the Banker’s hand form a pair. So if the Player’s hand is two 7s. Or, the Banker’s hand is two Kings (for example), you are a winner!

These types of bets usually pay out around 11:1, depending on the casino. While they feel like a good option (how hard is it for a pair to be dealt?!) bear in mind that the chances of a pair being dealt are relatively low. Additionally, the house edge on Player and Banker Pairs is significantly higher than standard bets. Making them a bigger risk over time. So choose wisely!

Either Pair: What if you don’t want to bet on just the Player or the Banker hand being dealt a pair? What if you want to hedge your bets and wager on both instead? That’s where the Either Pair side bet comes into play. One that’ll see you winning if either the Player or the Banker hands are dealt a pair, rather than one or the other.

Because with this bet you’ll be wagering on two hands at the same time, if you win, you’ll be paid out at a lower rate of 5:1 – but your chances of winning on this type of bet are higher. Even so, the house edge is still significantly greater than on standard Baccarat bets. Check your bankroll first to ensure it’s a decision you can afford to make.

Perfect Pairs: These are a more specific version of the standard pairs side bet, and are available in different forms:

Mixed Pair: A pair of the same value but different colours.
Coloured Pair: A pair of the same value and the same colour.
Perfect Pair: A pair of the same value and suit.

The stricter the pairing, the higher the payouts can become, sometimes reaching as high as 25:1 for a Perfect Pair. Of course, the chances of a Perfect Pair being dealt are minuscule, which makes it a very risky bet. Despite its attractive payout. Given the low probability of winning and the high house edge, it’s best if you treat these as novelty bets rather than standard wagers. Financial responsibility is key!

Top tips for Baccarat success

While Baccarat is a game of chance and allows very little room (if any) for strategic decisions, you can still get the most out of your gaming experience by putting smart habits in place:

Always keep the house edge in mind. As we’ve already discussed, the house edge on Player and Banker bets is the lowest in the game. With the Player bet coming in at 1.24% and the Banker bet coming in at 1.06%. And even while a 5% commission is still on the house for winning Banker hands, you’ll still come out ahead.

By comparison, the Tie bet has a significantly higher house edge, coming in at 14.4%. Don’t let higher payouts tempt you – do the maths, protect your bankroll, and stick to Player or Banker bets instead.

Choose the game with the least number of decks used. Some Baccarat games play with 6 decks; some play with 8. Now, does the number of decks used actually matter, and will it make a difference in the long run? Believe it or not, yes!

While the difference between the two seems subtle. In fact, games that use 6 decks have a slightly lower house edge than those that use 8. This is because the number of decks affects how many times certain card combinations occur. Specifically naturals and third card situations. Games that use fewer decks have a distribution pattern that gives players a slight advantage. One that’s worth cashing in on. It’s not a huge difference, but it can help you improve your outcomes over time.

Choose tables with low minimum bets. If you’re new to Baccarat, chances are you’ll want a little breathing room while you familiarise yourself with the game. That’s what low minimum tables can give you – the ability to play more rounds with a lower budget, and without the stress of big bets and potentially big losses too.

You’ll be able to learn how the game works as you go, you’ll be able to get comfortable with the flow and pace of the game, and you’ll be able to more easily absorb natural ups and downs as the game goes on. Minimum bets, minimum risk, just the way we like it!

Ignore supposed betting patterns and streaks

Don’t make the mistake of believing in the gambler’s fallacy. That past outcomes can influence future events, because they don’t. In fact, when you chase patterns and streaks you believe are occurring, you burn through your bankroll faster. Steer clear of emotional betting and focus on managing your bankroll instead. That’s the only surefire way to succeed.

Manage your bankroll

Speaking of which, the number one rule in Baccarat (and any online casino game for that matter), other than to have fun, is to manage your bankroll wisely. For this reason, it’s best to stay away from high-limit games and to play conservatively instead. Make sure you’re not playing too quickly, as rushing can lead to risky, expensive decisions. Rather, slow down, stay calm, and place your bets in a meaningful, focused way. The longer your bankroll lasts, the longer you’ll have life in the game!

Get your game on with online Baccarat today!

Got enough information to work with? We hope so! We’ve taken you through the colourful history of Baccarat, how the game works, the different variations available, and how to get the most out of your Baccarat experience. Now it’s your chance to put what you’ve learned into practice!

We understand that if you’re new to the casino and online gambling in general, Baccarat can feel a little intimidating. But underneath that polish and sophistication. It’s just as simple to pick up as either Blackjack or Roulette. Make sure you understand the card value system and the betting options available, and you’ll have everything you need to place your bets for success. Good luck!