Baccarat is perhaps the gambling game that appears the most sophisticated. Most people's familiarity with the game comes from James Bond movies. Well dressed people, usually European, seem to be playing for large sums of money. Even in US casinos baccarat tables are often set off to the side by themselves - mysterious. In contrast, the more "working-class" games of craps and slots areas are smack dab in the middle of the busiest areas of the casinos.

But looks can be deceiving. The fact of the matter is baccarat is nothing but luck as it only has two outcomes - a win for the House/Bank or the Player; if it is a tie all bets are cancelled and you get your stake back. Essentially it is like flipping a coin - if it is heads you win 95% of your stake and if it is tails you double your money. The game is a pure negative expectation gamble. This can be simply calculated: let's say you bet $10 on the Bank and $10 on the Player - if the Player wins, then the Casino pays out $20 - which is exactly the stake that you put in the first place. If the Bank wins, the Casino pays out $19 which is $20 less 5% commission, so the Casino makes 5%. So the house edge is 2.5%. Remember there is no strategy even though there are many who claim to have winning systems. There is no way to win except to get lucky as with most other forms of gambling. The house will gladly let you bet either heads or tails if they only have to pay you $19 if you win and you have to pay them $20 if you lose.

The method of the way the house makes its edge explains why the game has evolved into one for the snobby rich: the house takes a 5% commission on bets. So, the bigger the bets, the more the house takes. While nickel slots can be profitable for casinos, $1 baccarat games would be a waste of casino floor space.

Baccarat is pure gambling. Either own the house, or don't play. If a gun is put to your head and you absolutely must bet, then understand that (under the normal rules) betting on the "banker" is a less bad bet than betting on the "player". As a social form, it can be a great way of making contacts and improving your contact network. As a form of gambling, with time expect to lose 2.5% of your stake. It would be far better to go to the nearest pub and flip a coin - at least the expected result is 0 rather than negative 2.5%.