How to Play Baccarat: The Ultimate Guide for Australian Players
Baccarat might seem intimidating with its association with high rollers and James Bond, but it's actually one of the simplest and most elegant casino games you'll ever play. What makes baccarat iconic isn't just its sophisticated image but its remarkably favourable house edge and straightforward gameplay that has made it a staple in both Macau's VIP rooms and online casinos.
In this guide, we'll walk you through everything you need to know about how to play baccarat, from basic rules to betting options and strategy tips that casinos don't advertise. We've packed this guide with insights from thousands of hands played across Australian online casinos.
What is Baccarat?
At its core, baccarat is a comparison card game where you bet on which hand will win: the Player, the Banker, or if they'll Tie.
Despite what the names suggest, you're not actually playing against the banker—both "Player" and "Banker" are simply designations for the two hands dealt in each round. This distinction is crucial for understanding the game's dynamics.
Fun fact: Baccarat originated in France during the 19th century and was initially a game reserved for nobility. The name comes from the Italian word "baccara," meaning zero—referring to the fact that all face cards and tens have a value of zero in this game. This historical pedigree explains why baccarat still carries an air of sophistication that few other casino games can match.
The Baccarat Table Layout
A baccarat table has three main betting areas: Player, Banker, and Tie. The dealer handles the cards, and you simply place your bet before the cards are dealt.
Unlike the complex layouts of craps or roulette, the baccarat table is refreshingly simple, though there are subtle differences worth noting between physical and online versions.
In online baccarat, you'll encounter three main tables:
- Standard Baccarat - Features the classic oval table with clear Player, Banker, and Tie betting areas, typically accommodating multiple players.
- Mini-Baccarat - A scaled-down version with the same betting options but a smaller table and lower minimums, perfect for casual online play.
- Live Dealer Baccarat - Mimics the traditional baccarat table layout but includes additional features like roadmaps, statistics panels, and sometimes unique betting options like Super Six or Pair bets.
What sets quality online baccarat games apart is the intuitive chip placement system and clearly defined betting areas that eliminate confusion. The best online casinos offer baccarat tables with betting areas that illuminate when selected, giving you immediate visual confirmation of your wager.
Baccarat Rules: How the Game Works
Baccarat is a game between the Player and the Banker, and your objective is to bet on which hand will come closest to a total of 9.
- Before any cards are dealt, choose one of three bets:
- Player (betting that the Player hand wins)
- Banker (betting that the Banker hand wins)
- Tie (betting both hands will have the same value)
- Cards Are Dealt – The dealer gives two cards to both the Player and Banker hands. You can choose to draw a third card if the total value of their hand is less than 6. The banker also draws a third card under certain conditions.
- The hand closest to 9 wins, and payouts are made accordingly.
- Natural Wins: If either hand has a total of 8 or 9 (called a "natural"), the round ends immediately, and bets are paid accordingly. Naturals on the initial two cards occur approximately 17% of the time, making them a frequent and exciting outcome.
- Sum over 10: If the sum is 10 or more, the first digit is dropped
Card Values:
- Cards 2-9 are worth their face value
- 10, Jack, Queen, and King are worth 0
- Ace is worth 1
Calculating Hand Value
The hand total is calculated by adding the values of the two cards. If the sum is 10 or more, the first digit is dropped. For example, a hand with a 7 and an 8 totals 15, but its baccarat value is 5. This modulo-10 system is what makes the baccarat game so unique.
Example:
| Card 1 | Card 2 | Total Calculation | Final Hand Value |
| 7♠️ | 8♥️ | 7 + 8 = 15 → Drop the 10 | 5 |
| K♣️ | 6♦️ | 0 + 6 = 6 | 6 |
Third-Card Drawing Rules
Sometimes, there is a third card drawn by the player or the banker. Knowing when this third card comes into effect is what separates the amateurs and the pros in baccarat.
The third-card rule in baccarat might seem tricky at first, but it's actually straightforward when broken down into steps. Below, you'll find a step-by-step explanation with tables to make it easy to follow.
When Does the PLAYER Draw a Third Card?
The Player follows a simple rule:
- If the Player’s hand totals 0–5, they must draw a third card.
- If the Player’s hand totals 6 or 7, they stand (do not draw a third card).
- If the Player’s hand totals 8 or 9, it’s a natural win, and no more cards are drawn.
Tip
If the Player does NOT draw a third card, the Banker follows a much simpler rule—drawing on 0–5 and standing on 6 or 7.
| Player’s Initial Total | Action |
|---|---|
| 0–5 | Draws a third card |
| 6–7 | Stands |
| 8–9 | Natural win (no more cards drawn) |
When Does the BANKER Draw a Third Card?
The Banker’s action depends on two things:
- The Banker’s total after their first two cards.
- The Player’s third card (if the Player drew one).
The Banker follows these rules:
- If the Banker’s total is 0–2, they always draw a third card.
- If the Banker’s total is 3–6, their action depends on what the Player’s third card is.
- If the Banker’s total is 7, they always stand.
- If the Banker’s total is 8–9, it’s a natural win, and no more cards are drawn.
If the Player does not draw a third card, the Banker follows a simple rule:
| Banker’s Initial Total | Action |
|---|---|
| 0–5 | Draws a third card |
| 6–7 | Stands |
| 8–9 | Natural win (no more cards drawn) |
However, if the Player does draw a third card, the Banker’s decision depends on what that card is:
| Banker’s Total | Player’s Third Card | Banker’s Action |
|---|---|---|
| 3 | Any card except 8 | Draws |
| 4 | 2–7 | Draws |
| 5 | 4–7 | Draws |
| 6 | 6 or 7 | Draws |
| 7 | - | Stands |
📌 Tip: If the Banker has 3, 4, 5, or 6, their action depends on the Player’s third card. This is where most players get confused, so memorising this table (or keeping a reference card handy) is helpful.
What Happens if it's a Tie?
If the round ends in a tie, bets on the Player and Banker neither win nor lose—they’re considered a push. This means your wager stays on the table for the next round unless you choose to change or remove it.
After a tie, you might hear the dealer say, "Press, change, or rearrange your bets."
A Tie bet pays 8 to 1, so if you bet $10 on a tie, you’ll receive $80 in winnings plus your original $10 bet back.
Some casinos list the payout as 9 for 1, which means they give you $90 in total—but that includes your original $10 bet. Either way, the final amount in your hand is the same.
Types of Bets in Baccarat
Baccarat may seem simple, but knowing how each bet works can help you make smarter decisions at the table. The three main bets—Banker, Player, and Tie—each have different odds and payouts, and then there are side bets that add extra excitement but come with higher risks.
| Bet Type | Payout | House Edge | Win Frequency | Best For |
|---|---|---|---|---|
| Player | 1:1 | 1.24% | 44.6% | Players wanting simplicity and no commission |
| Banker | 1:1 (-5%) | 1.06% | 45.9% | Players focused on mathematical advantage |
| Tie | 8:1 or 9:1 | 14.4%/4.85% | 9.5% | Thrill-seekers willing to accept high risk |
The Banker bet is the safest option in baccarat, winning about 51% of the time. Casinos apply a 5% commission to balance the advantage, but even with this fee, it still has the lowest house edge at 1.06%.
The Player bet, on the other hand, offers a straightforward 1:1 payout with no commission, but its house edge is slightly higher at 1.24%. Some players prefer it because they don’t want to deal with the Banker’s commission.
Then there’s the Tie bet, which offers an eye-catching payout of 8:1 or 9:1. However, it’s a risky choice since ties happen less than 10% of the time. With a house edge of 14.36%, it’s the least favourable main bet in baccarat.
Baccarat Side Bets – Explained
Side bets in baccarat add extra excitement but often come with a higher house edge. While they offer big payouts, they rely more on luck than strategy. Here’s a breakdown of the most popular side bets and how they work.
Player Pair / Banker Pair
This bet wins if the first two cards dealt to the Player or Banker form a matching pair (e.g., two Kings). It pays 11:1 but has a high house edge of around 10.36%, making it more of a fun gamble than a consistent strategy.
Perfect Pair
A more specific version of the pair bet, this wager pays 25:1 if the first two cards dealt to either hand are not only the same rank but also the same suit (e.g., two 7s of hearts). While the payout is tempting, the odds of landing a Perfect Pair are very low, making it a long-shot bet.
Big and Small Bets
These bets predict how many total cards will be in play. The Small bet wins if exactly four cards are dealt between both hands, while the Big bet wins if five or six cards appear. The Small bet has a 5.27% house edge, while the Big bet sits at 4.35%, making them slightly better than other side bets but still not the most profitable options.
Real Example of Baccarat in Action
We recently played 50 hands of Lightning Baccarat at PlayAmo Casino with a $300 bankroll, implementing a specific strategy:
Our approach:
- We bet $10 on the Banker for the first 10 hands, then switched to the Player bet if we encountered 3 consecutive losses
- We allocated 10% of my total wagers ($1 per hand) to the Dragon Bonus side bet on the Banker hand
- We used a simple +1 unit after win, -1 unit after loss progression (minimum $5, maximum $25)
What happened:
- Banker bet performance: 18 wins, 15 losses (54.5% win rate)
- Player bet performance: 9 wins, 8 losses (52.9% win rate)
- The Dragon Bonus hit twice, once with a natural win (+$11) and once with a 7-point margin (+$90)
- We weathered a concerning 4-hand losing streak in the middle of the session
- Final result: +$67 profit (22.3% ROI)
Most revealing moment:
When the Banker hit three consecutive 6-point totals, something that happens less than 0.8% of the time. This kind of unusual sequence is what makes baccarat both frustrating and fascinating.
Basic Baccarat Strategies to Get You Started
While baccarat is largely luck-based, deploying a bit of proven strategy can help optimise your play. Whether it's Fibonacci, Martingale, or always betting on the banker, we have worked out the top baccarat strategies to shift your game and play like a pro.
Top 10 Baccarat Strategies at a Glance
| Strategy | How It Works | Risk Level |
|---|---|---|
| Always Bet on Banker | Consistently bet on Banker for the lowest house edge (1.06%). | Low |
| Always Bet on Player | Bet on Player every round for simple gameplay. | Medium |
| Martingale | Double your bet after a loss to recover losses with a single win. | High |
| Super Martingale | Like Martingale, but adds an extra unit each time. | Very High |
| Fibonacci | Increase bets following the Fibonacci sequence after losses. | Medium |
| Paroli (Reverse Martingale) | Double bets after a win to capitalise on streaks. | Medium |
| 1-3-2-6 System | Bet in a 1-3-2-6 sequence to lock in profits. | Medium |
| James Bond Strategy | Bet 70% on Banker, 25% on Player, 5% on Tie. | Medium-High |
| 3-2 System | Bet 3 units on one outcome and 2 on another. | Medium |
| Pair Bet Strategy | Bet on Player or Banker getting a pair (pays 11:1). | Very Hig |
Online vs. Live Baccarat
Both online and live dealer baccarat offer unique experiences, with specific advantages for Australian players:
Online RNG Baccarat:
Best for: Learning the game, testing strategies, quick sessions
Live Dealer Baccarat:
Best for: Experienced players, social gamblers, authentic experience seekers
| Feature | Online RNG Baccarat | Live Dealer Baccarat |
|---|---|---|
| Pace | Self-paced (40-60 hands/hour) | Fixed pace (27-45 seconds/hand) |
| Minimum Bets | From $1 | From $5 (typically) |
| Best For | Learning, strategy testing | Authentic experience, social play |
| Visuals | Computer-generated | Real dealers via video stream |
| Special Features | Auto-play, instant results | Squeeze options, chat features |
| Privacy | Complete | Semi-private (visible to dealer) |
Expert Tips for Playing and Winning Baccarat
After playing thousands of hands across dozens of online casinos, here are my most actionable tips for Australian players:
- Use the 5/40/20 rule: Reserve 5% of your bankroll for side bets, 40% for Player bets, and 55% for Banker bets
- Banker betting with discipline: Bet on the Banker most of the time—despite the 5% commission, it has the lowest house edge at 1.06%. What many players don't realise is that this advantage comes from the third-card drawing rules that slightly favour the Banker position.
- Avoid the Tie trap: While the 8:1 payout is tempting, the 14.4% house edge on the tie bet means you'll lose $14.40 for every $100 wagered over time. Even at the improved 9:1 payout offered by some Australian online casinos, it's still a mathematical disadvantage.
- Selective pattern betting: If you notice 3+ consecutive Banker or Player wins, consider making a small wager on the opposite for the next hand. While streaks can continue, this approach capitalises on the natural ebb and flow of the game without excessive risk.
- Choose Your Game Variant Strategically - look for a variant that suits your play style and risk level.
- Leverage Casino Bonuses Effectively: Look specifically for "table game" bonuses—many Australian online casinos exclude baccarat from standard bonuses. Calculate the true value of cashback offers (typically 5-10% at Australian-friendly casinos). Prioritise lower wagering requirements (under 30x) over higher bonus amounts
Popular Online Baccarat Variations
While traditional baccarat follows a set structure with the casino acting as the Banker and players simply betting on outcomes, these popular variations introduce unique twists to the gameplay.
| Variant | Key Difference |
|---|---|
| Live Dealer Baccarat | Played with a real dealer via live stream. |
| Speed Baccarat | Faster rounds, lasting 10–15 seconds. |
| No Commission Baccarat | Removes the 5% commission on Banker wins. |
| Baccarat Squeeze | Cards are revealed slowly for added suspense. |
| Lightning Baccarat | Random multipliers (2x to 8x) boost payouts. |
| Mini Baccarat | Smaller table, lower stakes, and faster gameplay. |
Live Dealer Baccarat
What It Is: A real dealer runs the game via a live-streamed video, bringing the social and interactive elements of a land-based casino to your screen. Players can watch the cards being dealt in real time and even chat with the dealer and other participants.
Why It’s Popular: Offers a more authentic experience compared to RNG-based baccarat games. Many versions also include side bets, squeeze reveals, and multi-camera angles to enhance excitement.
Speed Baccarat
What It Is: A fast-paced version where each round takes around 10–15 seconds instead of the usual 48 seconds in traditional baccarat. The dealer deals the cards quickly with no unnecessary pauses.
Why It’s Popular: Ideal for players who prefer rapid gameplay and want to place more bets in a shorter time frame. It’s especially suited for those who use progressive betting strategies like Martingale.
No Commission Baccarat
What It Is: In standard baccarat, a 5% commission is deducted from winning Banker bets to maintain the house edge. No Commission Baccarat removes this fee, meaning Banker and Player bets pay out equally at 1:1. However, some versions adjust payouts in other ways, such as offering lower payouts on specific hands (e.g., a 0.5:1 payout on a winning Banker bet with a total of 6).
Why It’s Popular: Players get full payouts on Banker bets, making it a more attractive option. However, it’s important to check the fine print, as casinos may compensate by tweaking payout structures.
Baccarat Squeeze
What It Is: This version adds a dramatic touch to the game by having the dealer slowly peel back the cards, revealing them bit by bit. This mirrors the suspenseful "squeeze" technique used in high-stakes baccarat games, particularly in Macau.
Why It’s Popular: The slow reveal creates tension and excitement, making the game feel more engaging. Many live casino versions of this game allow players to control the squeeze virtually.
Lightning Baccarat
What It Is: A modern, high-volatility version where certain cards are randomly assigned multipliers (ranging from 2x to 8x) before each round. If your winning hand includes these cards, your payout is multiplied accordingly.
Why It’s Popular: The potential for massive payouts adds an extra layer of excitement. However, to balance the game, casinos often charge a small fee (usually 20%) on each bet placed.
Mini Baccarat
What It Is: A smaller-scale version of the game, usually played with a single dealer and lower stakes. The rules are the same as standard baccarat, but the table accommodates fewer players, and the pace is generally faster.
Why It’s Popular: Perfect for casual players or those who want to enjoy a quick game without the pressure of high-stakes betting. Many online casinos feature Mini Baccarat as a go-to choice for beginners.
Emerging Trend
Several Australian-friendly online casinos now offer "hybrid" baccarat where RNG results are presented by animated dealers, combining speed with a more engaging visual experience.
Based on my extensive playing experience across multiple platforms, we recommend Evolution Gaming's Speed Baccarat for experienced players (with rounds taking just 27 seconds) and Pragmatic Play's regular baccarat for beginners (with a more relaxed 45-second pace).
Other Baccarat Guides
Conclusion
Baccarat offers the perfect blend of simplicity, elegance, and good odds that has made it increasingly popular among Australian players. The baccarat game's straightforward nature combined with its remarkably low house edge makes it an excellent choice whether you're a casual player or a serious enthusiast.
I hope this guide has given you not just the confidence to play baccarat, but the specific, actionable knowledge to approach it strategically. Remember, successful baccarat play combines understanding the mathematics, managing your bankroll effectively, and—perhaps most importantly—knowing when to walk away.
Baccarat FAQ
Emily is our seasoned content writer. She writes easy to read and helpful game guides, so you can quickly understand the rules of each game and get some useful tips that can help boost your chances of winning.
Read more about the authorLatest Guides
