What the 5% charge applies to
Traditional commission Baccarat deducts five percent from the profit on a winning Banker wager. It does not deduct five percent from the stake on every hand. A winning Banker bet therefore returns the original stake plus net profit of 0.95 times that stake. Player wins normally pay even money, while a Tie generally pushes ordinary Banker and Player bets.
These are wagers on the two hands, not roles played by guests at the table. The commission compensates for the slightly greater chance that Banker wins under standard drawing rules. It is not an arbitrary charge assessed for choosing the word Banker.
Worked example: a forty-unit Banker wager
Assume a hypothetical Banker bet of 40 units wins at a standard five-percent-commission table. The gross profit is 40 units. Commission equals 40 × 0.05 = 2 units. Net profit equals 40 − 2 = 38 units. The original stake of 40 is also returned, so the total amount handed back is 78 units. An advertised net payout of 19:20 or 0.95:1 expresses the same result.
If Player wins instead, the entire 40-unit Banker stake is lost. If the result is Tie, a conventional Banker bet is pushed and the 40-unit stake is returned without profit or commission. A separately placed Tie bet follows a different paytable.
A four-round commission ledger
Imagine four consecutive hypothetical 20-unit Banker wagers with results Banker, Player, Tie, Banker. The first hand adds 19 units net profit and one unit commission. The second loses 20 units. The third returns the stake unchanged and adds zero. The fourth adds 19 units profit and a second unit of commission. The example ledger finishes at 19 − 20 + 0 + 19 = 18 units ahead, with two units of winning commission collected.
That selected sequence is only an arithmetic illustration. It says nothing about how likely a similarly profitable sequence is, and it is not a sample of the game's expected return.
Immediate settlement versus tracked commission
Some traditional tables collect commission after each winning Banker round. Others display chips or markers recording commission owed until settlement at the end of a shoe. Tracking the obligation does not change the underlying amount: two winning 20-unit Banker wagers still generate one unit of commission each. The ledger is an accounting device, not a forecast of future hands.
The Wizard of Odds Baccarat Basics reference describes both the standard 19-to-20 settlement and commission markers. Individual house procedures differ, so a real table's published rules take priority.
Why 5% commission does not mean a 5% house edge
Commission is five percent of winning Banker profit; house edge measures the average net loss over all amounts initially wagered, including losses and pushes. In a conventional eight-deck game, the mathematical Banker house edge is about 1.06%, considerably less than five percent because commission is not collected on every wager.
For a breakdown of outcome probabilities and expected loss, read our Baccarat odds and house-edge guide. Different payout rules produce different results.
How to read a commission display
Check whether an interface quotes a net win of 0.95 per unit or a total return of 1.95 per unit. Confirm whether commission is deducted immediately or recorded for later payment, and whether any special Banker result changes the settlement. A table described as no commission may substitute a reduced payout or a push on a particular result.
The central lesson is accounting accuracy, not a recommended wagering tactic. Baccarat's mathematical advantage remains with the house under the conventional rules. This article is intended for adults as an educational explanation.