Baccarat is the world’s biggest table game, one that has a long history originating in Europe, found new life in Asia and, now, is making its way into America. But the game isn’t a surefire bet for every casino, especially ones with high-volume VIP customers and shallow pools of mass business. In many cases, close to half of the free hands drawn end up being “non-revenue events,” reducing income potential during the standard gaming day.
Baccarat’s storied past has been steeped in drama, intrigue and scandal. Despite its mysterious origin, the game is a pillar of casinos worldwide, with deep roots that stretch back 700 years. Some speculate that baccarat spun off from pai gow, an ancient Chinese tile game, brought to Italy by Marco Polo after his travels in the 13th century. Others say baccarat evolved from tarot cards, used in a ritual to predict the future and gamble for money, into modern playing cards.
It is a card game with three possible outcomes: player win, banker win or tie. Two cards are dealt to each player, and whoever’s hand total is closest to 9 wins. While the rules of the game are simple, the actual procedure is anything but. Dealers have to follow a strict set of rules and must memorize a tableaux, which lays out the game’s outcomes based on specific hand values and special rules.
The tableaux rules also dictate whether a third card is drawn. Unlike blackjack, where players can decide whether to draw or stay, the banker will only draw a third card if their first two cards match the rules for a nine-card hand. Otherwise, the banker will stand. The outcome of a baccarat game is determined by the totals the player and banker show, plus a tableaux.
Players have a tendency to be swayed by the results of previous hands and are easily seduced by the allure of winning big. This is why some of the highest stakes games in the casino are reserved for VIP players who can easily put a dent in a casino’s bottom line.
Until recently, baccarat was a premium game reserved for VIP customers with deep pockets. But the game can also generate healthy, reliable mass revenue at a variety of price points, if properly managed. In the case of baccarat, that means ensuring there is a robust pool of both mass and premium business to smooth out volatility. In addition, operators must astutely evaluate their financial position and tolerance for risk when deciding which customers to pursue and what limits to offer.