Definition
A Commission is a fee charged by the casino on certain winning bets. It is typically a small percentage (often 5%) deducted from the payout to maintain the house’s mathematical advantage.
In context
In a standard game of Baccarat, a $100 bet on the Banker pays even money ($100), but the casino takes a $5 commission. The player actually receives $95 in profit. The dealer tracks this commission in a “commission box” or “bead tray” to be paid when the player leaves or at the end of the shoe.
Why it matters
Commission is what turns a potentially player-favorable bet into a house-favorable one. Without the 5% commission on the Banker bet in Baccarat, the player would have a long-term mathematical edge over the casino.
Related terms
In detail
In the world of gambling, “free” doesn’t exist. If a bet seems too good to be true, there is usually a commission attached to it. Commission is the casino’s way of taxing bets that have a high probability of winning. It is most visible in three specific areas: Baccarat, Craps, and Pai Gow Poker.
Baccarat: The 5% Standard
Baccarat is the most famous example of a commission game. The “Banker” hand has a slight statistical advantage over the “Player” hand because the Banker acts second and follows specific drawing rules. On average, the Banker wins 50.68% of all non-tie hands.
If the casino paid even money on the Banker with no strings attached, smart players would bet on the Banker every time and eventually bankrupt the house. To prevent this, the casino charges a 5% commission.
- The Calculation: $Profit = Bet imes 0.95$
- The Payout: If you win $20, you get $19.
In many high-limit rooms, the dealer doesn’t take the $1 commission every time you win a $20 bet (because dealing with $1 chips slows the game down). Instead, they keep a running tally in a “commission box.” You “owe” the house that money. When the “shoe” (the container of cards) ends, or when you decide to leave the table, you must clear your debt. This is a common point of confusion for beginners who try to walk away with their winnings only to be told they owe $45 in commissions.
Craps: Buying the 4 and 10
In Craps, “Place Bets” on the 4 or 10 pay 9-to-5. However, you can “Buy” the 4 or 10, which means the casino will pay you “True Odds” (2-to-1) in exchange for a 5% commission.
- Example: A $20 “Buy” bet on the 4 would pay $40 if it hits, but you must pay a $1 commission. Some casinos only charge the commission if the bet wins, which is a much better deal for the player. Others charge it upfront when the bet is placed.
Pai Gow Poker: The Banker’s Tax
Pai Gow Poker is a game known for many “pushes” (ties). Because of the slow pace and high push rate, the house needs to ensure it makes money when a player actually wins. Most traditional Pai Gow games charge a 5% commission on every winning hand. If you bet $100 and win, the dealer gives you $95.
Why Casinos are Moving Away from Commission
From an operational standpoint, commissions are a nightmare. They lead to:
- Dealing Errors: Math mistakes by dealers.
- Game Speed: Slowing down the game to calculate and collect change.
- Player Frustration: People hate “owing” money or getting “uneven” payouts (like $4.75).
This has led to the rise of “Commission-Free” games. In Commission-Free Baccarat (like EZ Baccarat), the Banker pays even money on almost every win. The “tax” is replaced by a specific rule: for example, if the Banker wins with a specific three-card total of 7, the bet is a “push” rather than a win. This keeps the house edge intact without the need for messy math and physical commission chips.
As a player, always look at the commission structure. A “winning” bet that is taxed 5% might still be a better deal than a “tax-free” bet with a worse house edge (like the “Tie” bet in Baccarat).