Online baccarat does not draw as much traffic as the visually appealing slot games or even the more glamorous roulette and blackjack games. But all online casinos offer baccarat because it is game with extremely low house edges and a game that does not require any skill. Therefore there is a dedicated high roller clientele for online baccarat that is willing to exploit the advantages the game offers.

Online baccarat is based on the Punto Banco land casino variant. The casino plays out the baccarat hand between a designated player position and a designated banker position. The bettors can place wagers on the designated player, designated banker or tie. If they guess right they are paid according to the online baccarat rules. This article considers each of the bets in turn and evaluates the house edges involved and explains the strategies online baccarat players should adopt.

The Banker bet wins if the designated banker wins the hand. The bet pays even money, but a 5% commission is deducted from the payout. Hence effectively the payout is 0.95 to 1. In online baccarat the house edge depends on the number of decks used in the game. Most common are the 8 decks and the 6 decks variants. Some online casinos also offer a single deck variant. The house edge on the Banker bet for the 8 decks variant is 1.058%, for the 6 decks variant is 1.056% and for the single deck variant is 1.012%.

The Player bet wins if the designated player wins the hand. The bet pays even money. The house edge on the Player bet for the 8 decks variant is 1.235%, for the 6 decks variant is 1.237% and for the single deck variant is 1.286%.

Online baccarat also offers a Tie bet, which wins if the designated player and the designated banker have hands of identical values. In most online casinos the Tie Bet pays out at 8 to 1. The house edge on the Tie bet with this payout for the 8 decks variant is 14.36%, for the 6 decks variant is 14.44% and for the single deck variant is 15.75%. Some online casinos offer baccarat games in which the Tie bet pays out at 9 to 1. This reduces the house edge considerably. The house edge on the Tie bet with this payout for the 8 decks variant is 4.84%, for the 6 decks variant is 4.93% and for the single deck variant is 6.39%.

The online baccarat strategy revolves around understanding the implications of the house edges. There are players who do not find even money payouts attractive and look to wager on the higher paying bets. They find the Tie bet the most attractive from this point of view. But the 8 to 1 paying Tie bet with a house edge of over 14% is a rip off and should be avoided at all costs. The 9 to 1 payout Tie bet also has a high house edge, but one that is comparable with the house edge of online slots. Hence players willing to compromise on the house edge for the sake of higher payouts can wager on the 9 to 1 Tie bet, but should select the 8 decks variant.

The most popular bets are the Banker and the Player bets. Many online baccarat players go for the Player bet because of the commission applied to the Banker bet. But despite the commission the Banker bet has the lower house edge and is the preferred bet. The Banker bet is unique because its house edge decreases with a decrease in the number of decks. Players should therefore locate a single deck online baccarat game and go for the Banker bet every time.