House in playing Baccarat

Which is more advantageous to the House in playing Baccarat?

Each time the banker wins they deduct a 5% commission? or every time a banker wins by a six they reduce the winnings by half? Please give a mathematical explanation…thanks!
You can bet to the banker or to the player. The odds for the banker to win is 50.6% and for a player it is 49.4% not including ties..
And the chances a banker win by a six is 1 out of 13 deals..

Question asked by: kim z

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One comment

  1. Let W be the winnings.

    1. The 5% deduction occurs 50.6% of the time and is expected to pay .05 X .506 X W = .0253W.
    2. The 50% deduction occurs 1/13 of the time and is expected to pay (0.5/13)W = .0385W.

    So the 50% deduction is more favorable to the house

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