Baccarat is one of the most popular casino games. It is known for being associated with luxury and high-rollers, but it is also accessible to players with limited bankrolls. In addition, baccarat offers players a fun and exciting experience without the need for complex rules or complicated betting systems. It is no wonder that it has become a staple of many online casinos.

There are two hands dealt in baccarat: the player hand and the banker hand. The goal of the game is to bet on the hand that will have a value closest to nine. The number of cards in each hand is not important; the value is determined by adding up the values of the individual cards and subtracting the tens digit. In the case of a tie, neither hand wins and all bets lose.

The dealer places a commission box on the table and collects winning bets, paying out losses as necessary. In the event of a banker win, a 5% commission is taken from the total winning amount. The remaining money is paid to the player.

Players can place a variety of bets in baccarat, including the Players Bet, Banker Bet, and Tie Bet. Each bet type has different odds and payouts. The banker bet has the lowest house edge, and it is recommended to avoid the tie bet, which has a much higher house edge.

Once all bets have been placed, the dealer will deal a card to the player and a card to the banker. The hands are then compared and the winner is declared. The hand with the highest value wins. If either hand has a value of eight or nine (also known as a natural), all bets on that hand will be paid out. If the hand is a seven or lower, the player must draw a third card according to specific rules.

The game is played with six, seven, or eight standard decks of cards. The game can have a fixed number of seats for players, from seven to 14, and a dealer area. Each player has a separate betting area. The cards are dealt by the dealer, who does not take part in the actual play of the game. The value of each hand is determined by the sum of its cards, but only the rightmost digit counts. Picture or face cards are worth zero points, cards numbered from 2-9 have their face value, and the ace is worth one point.

Once the hands have been compared, the dealer or software will declare the winner and pay those who placed bets on it. This process is called “edge sorting” and has been a topic of controversy since Phil Ivey won $10 million on two occasions using this strategy. While edge sorting is not illegal, some casinos have refused to honor the bets and have sued Ivey for millions. While the technique is controversial, it is not a scam and can be used to maximize your profits.