House edge baccarat

Please give me a simple answer: 5% commission baccarat. If I bet on banker and player at the same time on every single game on 8 decks shoe. The house will gain 5% on my banker bets and make even on my player bets. So why is it that the house edge on banker is 1.06% and on player is 1.24% . I thought on this situation, the house makes 5% on banker but makes 0% on player? Please help.

If you're playing both you're not losing 5% every hand. I don't know the actual number, but assume the banker wins 60/100... then you're losing 5%, 60% of the time.

So you make 100 $10 wagers... you lose 5% (50 cents) on 60 of them. So in 100 bets, with a total action of $1000, your EV is -30, which already balances out to a 3% HE, not 5%. This is also playing dumb and betting both wagers.

There's plenty and plenty of math done (even by the wizard) to show you why 1.06% and 1.24% are the HE's for the other bets. If you simply type your thread title "House Edge Baccarat" in to google you'll get a hit to the Wizards Baccarat page.

Simple answer:

Let's assume you bet $50 on player and $50 on banker

45.86% of the time, the banker wins; you lose $2.50 of the $100 you bet, or 2.5%
44.62% of the time, the player wins; you don't lose anything
9.52% of the time, it is a tie; you don't lose anything, as both of your $50 bets push.
Thus, you expect to lose 45.86% of 2.5%. or 1.1465%, of your $100 with each bet.
Notice that this is between the 1.06% for banker bets and 1.24% for player bets.

Thank you mr.Romes and Mr. DonGuy. Now I got it. I read all the Wizard mathematic explaination but my 84 year brain can not digest it. That's why I need simple answer. I love this forums because there are many geniuses like you guys and are willing to help. Thank you again.