Baccarat Ver PDF

A New Variant of Baccarat for VIP Players
Stewart Ethier and Jiyeon Lee
University of Utah and Yeungnam University (South Korea)
June 9, 2016
Ethier & Lee (UU & YU) A New Variant of Baccarat June 9, 2016 1 / 11
Sheet1
Annual2006VIP Baccarat
36783 Revenue
4.6
in Macau (Billions of US $)
35.02007
55762 7.0
2008 73772 9.2
30.02009 79834 10.0
2010 135648 17.0
25.02011 196126 24.5
2012 210850 26.4
20.0
2013 238524 29.8
Co
2014 212535 26.6
15.0
2015 127818 16.0
10.0
5.0
0.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Schwartz, David G. (2016) UNLV Center for Gaming Research,

http://gaming.unlv.edu/abstract/macau.html.
A brief history of Baccarat
Baccara Chemin de Fer. Originated in France (c. 1850s or 1860s).

A two-person game (Player vs. Banker).
See Ethier and Gámez, Games 4 (2013) 711-737.
Baccarat. Originated in Havana, Cuba (1950s). Evolved from Baccara
Chemin de Fer. Differences include:
A 5% commission on Banker wins was added.
Player’s strategy was fixed, as was Banker’s strategy.
The game became house-banked with bets offered on both Player’s hand
and Banker’s hand.
Baccara à Deux Tableaux (a.k.a. Baccara Banque). Originated in
France (c. 1830s or 1840s). A three-person game (Player 1 vs. Banker
and Player 2 vs. Banker).
See Ethier and Lee, Games 6 (2015) 57-78.
Two-Table Baccarat. Related to Baccara à Deux Tableaux in the same
way that Baccarat is related to Baccara Chemin de Fer.
Rules of Two-Table Baccarat
Summary: Two-Table Baccarat comprises two simultaneous games of
Baccarat, Player 1 vs. Banker and Player 2 vs. Banker, but with only one
Banker hand and with a reduction in the commission on Banker wins.
In more detail,
Player 1, Player 2, and Banker each receive two cards face down, dealt
from an eight-deck shoe.
Anyone who has a natural turns over his cards. If one Player has a
natural, play continues between the other Player and Banker.
As at Baccarat, Player 1 draws on 5 or less, stands on 6 or 7. Player 2
does the same. Third cards are dealt face up.
Banker draws or stands according to a Table of Play.
Bets are settled as in Baccarat, both Player 1 vs. Banker and Player 2 vs.
Banker, except that the commission on winning Banker bets is 4%.
How is Banker’s strategy determined?
Key premise: It should not depend on the amounts bet.

Example
Suppose Player 1’s third card is 7 and Player 2’s third card is 8. What
should Banker do?
If he were playing Baccarat against Player 1, he would draw on 0–6 and
stand on 7. (169, 105, 41, 9, 9, 9, 9, −41)/273
If he were playing Baccarat against Player 2, he would draw on 0–2 and
stand on 3–7. (191, 127, 63, −1, −33, −33, −33, −33)/273
In Two-Table Baccarat, he draws on 0–3 and stands on 4–7.
(180, 116, 52, 4, −12, −12, −12, −37)/273
In general, Banker’s drawing strategy is specified by a Table of Play.
Banker’s Table of Play at Two-Table Baccarat
House edge∗ , Baccarat vs. Two-Table Baccarat
bet payoff odds edge (%)

Player 1 to 1 1.24
Banker 19 to 20 1.06
Tie 8 to 1 14.36
bet payoff odds edge (%)

Player (P1; P2) 1 to 1 0.93
Banker (vs. P1; vs. P2) 24 to 25 0.91
Tie (P1-B; P2-B) 9 to 1 8.11
Three-Way Tie (P1-P2-B) 90 to 1 15.35
∗ pushes included, 8-deck shoe

Possible Layout for Two-Table Baccarat
Commission-free Baccarat and Two-Table Baccarat
In EZ Baccarat R
, the 5% commission on Banker wins is eliminated and
instead, if Banker wins with a three-card 7, bets on Banker are
considered pushed.
The effective commission is about 4.9%. The house edge on Banker bets
becomes 1.02% (instead of 1.06%).
In Two-Table Baccarat, a similar rule is feasible: The 4% commission on

Banker wins is eliminated and instead, if Banker wins with a three-card 7
against a three-card Player hand, bets on Banker (vs. that Player) are
considered pushed.
The effective commission is about 4.2%. The house edge on Banker bets
becomes 1.00% (instead of 0.91%).
Executive Summary
Why will VIP players be attracted to Two-Table Baccarat?

It has a historical connection to Baccarat and is very Baccarat-like; but it
offers more choices than Baccarat.
The rules are clear at a glance.
It has a smaller house edge on Player and Banker bets than does
Baccarat. In the case of the Player bets, this is clear without calculation.
In the case of the Banker bets, this is suggested by the reduced
commission on winning bets.
Why will casino management want to offer Two-Table Baccarat?
It will attract VIP Players.
Even with a reduced house edge, it will earn substantial revenue. (The
game is intended for VIP players.)
A commission-free version is available.
Origin of Two-Table Baccarat
Invented by Stewart Ethier and Jiyeon Lee (2015).

Intellectual property rights owned by TVC, University of Utah
(Technology and Venture Commercialization).
Contact person: Richard Green.
[email protected]

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A New Variant of Baccarat for VIP Players

Stewart Ethier and Jiyeon Lee

University of Utah and Yeungnam University (South Korea)

Source: Schwartz, David G. (2016) UNLV Center for Gaming Research,

Baccara Chemin de Fer. Originated in France (c. 1850s or 1860s).

Key premise: It should not depend on the amounts bet.

In general, Banker’s drawing strategy is specified by a Table of Play.

bet payoff odds edge (%)

bet payoff odds edge (%)

∗ pushes included, 8-deck shoe

In Two-Table Baccarat, a similar rule is feasible: The 4% commission on

Why will VIP players be attracted to Two-Table Baccarat?

Invented by Stewart Ethier and Jiyeon Lee (2015).

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