The three core baccarat bets — Banker, Player, and Tie — have been around since the game crossed from European aristocratic parlors to Las Vegas felt. They're clean, simple, and carry house edges that range from excellent (1.06%) to terrible (14.36%).
Then there are the side bets — optional wagers printed on the felt alongside the main betting areas, offering payouts of 11 to 1, 25 to 1, even 40 to 1. They look exciting. They sound lucrative. And they all share a common trait: house edges that make the Tie bet look restrained.
Side bets exist because casinos discovered that players who are already at the table — already betting Banker or Player — will happily add a dollar or five to a flashy side wager for the chance at a big hit. The math is heavily stacked against the player on every single one. But understanding what each bet is, what it pays, and what it costs lets you make an informed decision rather than a reflexive one.
How Side Bets Work
Side bets in baccarat are independent wagers placed before the hand is dealt, alongside your main Banker or Player bet. They resolve based on the outcome of the same hand but use different criteria for winning — typically the specific composition of the cards rather than just which side has the higher total.
You can place side bets without a main bet at most tables, though some require a minimum Banker or Player wager to participate. Side bet minimums are often $1–$5, which makes them feel inconsequential — but a $5 bet with a 10% house edge costs $0.50 per hand in expected losses. Over 200 hands, that's $100 in expected losses from a bet that "only" cost five dollars.
Dragon 7
Where you'll find it: EZ Baccarat tables (no-commission variant).
What it is: A bet that the Banker hand will win with a three-card total of exactly 7.
Payout: 40 to 1.
House edge: 7.61%.
The Dragon 7 is specific to EZ Baccarat, where the standard 5% Banker commission is replaced by a push rule: when the Banker wins with a three-card 7, the main Banker bet pushes instead of paying. The Dragon 7 side bet lets you wager specifically on that outcome — and it pays handsomely when it hits.
The problem is frequency. A three-card Banker 7 occurs only about 2.25% of the time — roughly once every 44 hands. At 40 to 1, the break-even frequency would need to be about 2.44%. The gap between 2.25% and 2.44% creates the 7.61% house edge.
In dollar terms: a $5 Dragon 7 bet costs about $0.38 per hand. Over 100 hands, that's $38 in expected losses — from a bet that might hit two or three times, paying $200 each time. The wins feel enormous. The accumulated cost of the losses between them is quietly larger.
The Dragon 7 is actually one of the better side bets in baccarat, purely because its house edge is below 8%. That's a low bar, but among side bets, it clears it.
Panda 8
Where you'll find it: EZ Baccarat tables.
What it is: A bet that the Player hand will win with a three-card total of exactly 8.
Payout: 25 to 1.
House edge: 10.19%.
The Panda 8 mirrors the Dragon 7 but on the Player side. When the Player wins with a three-card 8, the Panda 8 pays 25 to 1. This event occurs about 3.45% of the time.
At 25 to 1, the break-even frequency would be about 3.85%. The actual frequency falls short, creating a 10.19% house edge — significantly worse than the Dragon 7.
A $5 Panda 8 bet costs about $0.51 per hand. Over 100 hands, that's $51 in expected losses.
The Panda 8 is a worse proposition than the Dragon 7 in every respect: higher house edge, lower payout multiple, and a similarly rare trigger event. If you're going to dabble in EZ Baccarat side bets — and the math argues you shouldn't — the Dragon 7 is the less expensive option.
Player Pair and Banker Pair
Where you'll find it: Most standard baccarat tables.
What it is: A bet that the first two cards dealt to the Player (or Banker) hand will be a pair — two cards of the same rank (e.g., two 7s, two Kings).
Payout: 11 to 1.
House edge: ~10.36% (8-deck shoe).
Pair bets are among the most common baccarat side wagers. They're simple to understand — you're betting that the hand starts with a matching pair — and the 11-to-1 payout creates the same emotional spike as other high-payout side bets.
In an 8-deck shoe, the probability of any specific hand starting with a pair is about 7.47%. For the 11-to-1 payout to break even, the pair would need to occur about 8.33% of the time. It doesn't. The gap produces a house edge of roughly 10.36%.
| Pair Bet |
Probability |
Payout |
House Edge |
| Player Pair (8 deck) |
7.47% |
11 to 1 |
10.36% |
| Banker Pair (8 deck) |
7.47% |
11 to 1 |
10.36% |
A $5 pair bet costs about $0.52 per hand. If you place both Player Pair and Banker Pair on every hand, that's $1.04 per hand — over 100 hands, roughly $104 in expected losses from side bets alone.
Some tables offer an Either Pair bet — wagering that at least one of the two hands will contain a pair. This typically pays 5 to 1 and carries a house edge of approximately 14.54%, making it one of the worst side bets available.
Natural 8 and Natural 9
Where you'll find it: Select tables and online platforms.
What it is: A bet that the Player or Banker hand (depending on the specific bet) will be dealt a natural 8 or natural 9 on the first two cards.
Payout: Varies — typically 8 to 1 for a natural 9 and 8 to 1 for a natural 8.
House edge: Varies by table and configuration, typically 5–10%.
Natural side bets are less standardized than Pairs or Dragon/Panda. The specifics — which hand the bet covers, the exact payout, and whether it includes both 8 and 9 or just one — differ from table to table. Always check the placard before placing these wagers.
Even at the lower end of the house edge range (5%), natural bets are still five times more expensive per dollar than the Banker bet. They add variance and excitement without adding value.
Big and Small
Where you'll find it: Some Asian-market baccarat tables and online platforms.
What it is:
- Small: A bet that the total number of cards dealt in the hand will be 4 (both hands use only their initial two cards — no third cards drawn).
- Big: A bet that the total number of cards dealt will be 5 or 6 (at least one third card is drawn).
Payout: Small pays 3 to 2. Big pays 2 to 3 (or similar — varies by table).
House edge: Approximately 5.27% for Small and 4.35% for Big.
These bets are less common in North American casinos but worth knowing if you play at Asian-market tables or online. They're less expensive than most side bets, but still far worse than the core Banker and Player wagers.
The Side Bet Summary Table
| Side Bet |
Payout |
House Edge |
Verdict |
| Dragon 7 |
40 to 1 |
7.61% |
Best of a bad bunch |
| Panda 8 |
25 to 1 |
10.19% |
Expensive for the payout |
| Player Pair |
11 to 1 |
10.36% |
High edge, low frequency |
| Banker Pair |
11 to 1 |
10.36% |
Same as Player Pair |
| Either Pair |
5 to 1 |
14.54% |
Among the worst available |
| Natural bets |
Varies |
5–10% |
Table-dependent, always check |
| Big/Small |
2:3 – 3:2 |
4–5% |
Less common, still costly |
Every entry on this table carries a house edge at least four times higher than the Banker bet. Several are more than ten times higher.
The Cumulative Cost of "Just a Dollar"
Side bets feel harmless because each individual wager is small. But they accumulate.
Consider a player who bets $25 on Banker (solid) and adds $5 on Player Pair and $5 on Dragon 7 every hand. Over 100 hands:
- Banker bet expected cost: $26.50
- Player Pair expected cost: $51.80
- Dragon 7 expected cost: $38.05
- Total expected cost: $116.35
Without the side bets, the session costs about $27. With them, it costs $116 — more than four times as much. The side bets, which "only" cost $10 per hand combined, account for 77% of the total expected loss.
This is the true danger of side bets: they don't feel expensive because each one is small, but their house edges are so high that they dominate the session's cost structure even at low stakes.
When Side Bets Make Sense
Almost never, from a mathematical perspective. Every side bet on the baccarat table carries a house edge that dwarfs the core bets.
The one scenario where side bets have a defensible role: entertainment budget. If you've allocated $100 for a session, understand that you're paying for fun, and want the occasional thrill of a 40-to-1 payout, sprinkling $1 side bets on a few hands per shoe won't destroy your bankroll. But it should be a conscious choice — money you're knowingly spending on entertainment, not money you expect to see again.
The moment side bets shift from "occasional fun" to "every hand" is the moment they become the dominant cost of your session.
Try It Yourself
Our free baccarat simulator includes side bet options so you can see exactly how they perform over an extended run. Place Dragon 7 bets for an entire shoe and track the results. Place Pair bets for another shoe. Compare those costs to a shoe of flat Banker bets with no side bets. The difference will be stark — and it's the kind of lesson that sticks better when you've seen it in your own running tally rather than in someone else's article.
Frequently Asked Questions
What are the most common side bets in baccarat?
Player Pair, Banker Pair, Dragon 7 (EZ Baccarat), and Panda 8 (EZ Baccarat). Some tables also offer Either Pair, Natural bets, and Big/Small wagers.
Are any baccarat side bets worth making?
Not from a mathematical standpoint. Every standard side bet carries a house edge of at least 4%, and most exceed 7%. They're entertainment wagers, not strategic ones.
What is the Dragon 7 bet?
A side bet in EZ Baccarat that the Banker will win with a three-card total of 7. It pays 40 to 1 and carries a 7.61% house edge.
What is the Panda 8 bet?
A side bet in EZ Baccarat that the Player will win with a three-card total of 8. It pays 25 to 1 and carries a 10.19% house edge.
How much do Pair bets cost in expected losses?
At $5 per bet, a Player Pair or Banker Pair wager costs about $0.52 per hand in expected losses. Over 100 hands, that's roughly $52.
Can side bets be combined with the Banker or Player bet?
Yes. Side bets are placed alongside your main wager before the hand is dealt. They resolve independently — you can win your Banker bet and lose your Pair bet, or vice versa.
Final Thoughts
Baccarat side bets are engineered to be appealing. Big payouts, small minimums, and the illusion of "adding a little extra" to each hand. The reality is that a $5 side bet with a 10% house edge costs more per hand than a $25 Banker bet with a 1.06% edge. The side bet costs twice as much despite being one-fifth the size.
If you play baccarat to minimize cost and maximize time at the table, avoid side bets entirely. If you play for entertainment and accept the price, limit side bets to a small, pre-defined portion of your session budget. Either way, know what you're paying. The table won't tell you. The math will.
Related articles:
Responsible Gambling Disclaimer: The house maintains a mathematical edge in all casino games. No betting system guarantees wins. Play responsibly and never wager more than you can afford to lose.