Gambling in American History

There are several variations of a game called baccara.  The word baccara means “zero” in Italian. The game originated in Italy and developed during the Middle Ages. The game was exported to France, where it became known as baccarat and also as chemin de fer. The latter term means “railroad” and refers to the fact that the bank for the traditional game was passed around the table from player to player. Other variations of the game are called punto banco and minibaccarat.
Although the manner of play in the games varies, the strategy is quite similar. The goal of all the games is to get a series of two or three cards that total 9 in value or as close to 9 as possible. The side that is closer to 9 wins the game. Cards are typically drawn from a six-deck shoe. Cards are alternately given face down to one side, called the “bank,” and to the other side, called the “player.” The cards are then turned over—first the player’s cards, then the bank’s cards. The ace is counted as 1; each numbered card is counted as its value, except for the ten, which is counted as 0; the face cards are counted as 0. When the numbers are added up, 10 (or 20) is subtracted from any number over 9 (or 19). If the player’s first two cards add up to 8 or 9, it is considered a “natural,” and no more cards are drawn for either side. The bank’s cards are revealed, and the winner is determined. If both hands have the same number, it is a tie. If the player’s hand is not a natural, the bank hand is examined to be sure it is not a natural. If it is a natural, there is no draw for the player’s hand. The player’s hand draws another card if the hand adds up to 0, 1, 2, 3, 4, or 5. If the player’s hand adds up to 6 or 7, it gets no more cards. Whatever the player’s hand has, the bank must draw if it has a 0, 1, or 2. It stands on a 7, and of course on a natural 8 or 9. If the bank has a 3, 4, 5, or 6, it takes cards depending upon the cards of the player. In the baccarat game played in most casinos today, there are absolutely no possibilities for deviating from these rules. In some variations of the game, there is an option of drawing or standing when the player’s hand is 5.
The games now played find all players betting against the house—against the casino. The players may bet either that the bank hand wins or that the player hand wins. Players receive even-money payoffs if their bets are correct. If there is a tie, neither hand wins or loses. The players may also wager on a tie, however, and they are paid eight to one if the game is a tie.
In some European casinos now as well as traditionally, there would be a double table for baccarat. This game gives the casino dealer a degree of discretion. Three hands are dealt. One hand, the bank hand, is the casino’s hand. Two hands—one for each side of the table—are designated as player’s hands. The casino (bank) competes one-on-one against each of the player’s hands. In this game the casino patron may bet only on the player’s hand at his side of the table. As the player’s hands are revealed (both before the bank’s hand is revealed—except to check for naturals), the casino dealer must then within strict limits decide whether to play in a way to maximize winning against one or the other side of the table. The dealer considers the amounts wagered at each end of the table if choices are possible to draw or stand.
Casinos in the United States use only a single-table baccarat table for games, although players are spread all around the table. In the commonly played game (which is universally played in the United States), the players who bet on the bank and win must pay a 5 percent commission fee on the amount of their winnings. With this commission, that casino maintains a 1.17 percent advantage over the player who bets on the bank and a 1.36 percent advantage over players betting on the player hand. In the European chemin de fer game, the advantage actually belongs to one of the patrons at the table. He or she bets against all other players, who must bet on the player’s hand. That patron keeps the bank as long as the bank hand wins. On each such bank win, however, he or she must give the casino a 5 percent commission on all winnings. It is in this game that the player hand (actually played by the largest bettor against the bank) has the option of standing or playing on a five.
There is also a popular variation of the baccarat game that is played at a small table (the size of a blackjack table). All players face the dealer, who handles all the cards, dealing both hands, turning over the cards of each hand, and making set bets without any options. A minibaccarat game typically allows low-stake bets, whereas the casino baccarat game has gained a reputation for being the casino’s most elegant game, as it has the highest table limits permitted in the casino.
Except when played at the minitable, there is great ritual at the baccarat game.  Cards are turned over by the player (one player in turn represents the player’s hand) with great suspense. The casino’s dealers mimic this style as they reveal the bank’s hand and then draw new cards. Casinos find the highest bets at these tables. The highest rollers to be found in the world gravitate to the baccarat tables of the leading casinos. They may play several hundreds of thousands of dollars per hand. The games are favored especially by the most wealthy Asian and European players wherever they may be found. The games may be separated from other tables by ropes. Dealers wear tuxedos at baccarat tables, but only standard casino uniforms at others. In European casinos where drinks and food are not allowed on casino floors, exceptions are made for the baccarat players.
System players using simple methods, ranging from the Martingale strategy to much more elaborate schemes, also seek out the baccarat tables for their even-money bets, as these tables offer the best odds to players on even-money choices. Casinos compete with each other to win the loyalty of the baccarat high rollers. Gifts of every type imaginable are offered to these special players. From month to month, Las Vegas Strip casinos see their bottom-line revenues go up and down considerably, depending upon how much is played at the baccarat tables and whether or not one or several of the richest players hit a prolonged winning streak. Occasionally, a casino will experience a monthly loss because of a run of player luck at baccarat. This cannot be said of any other game (unless there is cheating). Another attraction of the baccarat table is that the players can act as a social group and bet together—whether on the bank or player—and can cheer and console each other, as the case may be. <

The four Maritime or Atlantic provinces of Canada—New Brunswick, Newfoundland, Nova Scotia, and Prince Edward Island—joined together in 1976 to form the Atlantic Lottery Corporation. The purpose of the corporation is to serve as a central marketing agency for lottery products in the provinces. An eight-member board of directors is composed of two representatives from each province. The corporation offers several different games, including traditional weekly and daily draws, instant games, and lotto games. <

 From my studies and personal observations, I believe that the Asian continent has produced the world’s best gamblers. Persons of Asian heritage attack the games of the casinos all over the world with a vigor and zest not found coming from other ethnic groups. The explanations for Asians’ love of gambling are explored in Appendix A in the section “The Best Gamblers in the World.” Here we consider the irony that the most prevalent religions of the Asian continent—Muslim, Hindu, Buddhist, and Shinto—all frown upon gambling activity. The religious activities have greatly limited the scope of legal gambling that is permitted, although there are exceptions to the rule. Many countries permit lotteries and horse racing. The major jurisdictions—indeed the two most populous countries in the world, China and India—totally ban gambling, however. (The enclave known as Macao is now part of China, and its casino gambling will be reviewed over the next few years by authorities in an effort to decide whether it will stay or go. See Macao.) India has allowed gambling boats, and there are also horse racing tracks and lotteries, but there is no casino gambling.
In the area known as Asia Minor (and the Middle East), Turkey has had casinos since 1969.  The legality of the facilities has been under constant scrutiny, however, and the gambling has not been able to be focused toward any societal goals such as economic development. For many decades before the 1970s, Lebanon offered the finest casino in the Middle East. Internal warfare totally destroyed the entertainment value of gambling in the country. When the Palestine state gained a measure of sovereignty in the 1990s, it authorized a casino that sought much of its patronage from Israeli citizens.
Nepal has small casinos for foreign visitors to the hotels in Kathmandu. Most of their patrons are Indians. The only other casinos on the soil of mainland Asia are in Korea. Casinos have operated there since 1967 as a way to attract foreign capital. Local residents are not permitted into the casinos. Among the foreign patronage are the 40,000 U.S. military personnel stationed in the country.
A government organization in the Philippines runs twelve casinos. Additionally, the organization has contracts with foreign investors who operate private casinos in several large hotels. The Philippines have not been subjected to the religious restraints of most of the Asian countries, as the islands were under Spanish and U.S. control with strong, gambling-tolerant Catholic influences for nearly four centuries before independence came in 1946.
Malaysia offers an interesting casino environment. The Genting Highlands resort, located thirty-five miles from the capital city of Kuala Lumpur, is the only permitted casino. It has been in operation since 1970, with a complex of 3,500 hotel rooms and 200,000 square feet of casino space. Until the Las Vegas MGM and Foxwoods in Connecticut opened casinos in the 1990s, Genting Highlands was the largest casino in the world. (Indeed, when the Pequot tribe of Native Americans wished to build Foxwoods, it was refused financing by every U.S. source because it was too big a risk. The tribe eventually received its loan from the Genting Highlands Gaming Corporation.) As the Muslim faction among the Malaysian population has considerable political influence, it has permitted the casino only under the condition that only non-Muslim Malaysian residents may enter the casino. The Muslim religious organization is allowed to patrol the casino with a police arm. It has the authority to drag out any local Muslims it finds, and the religious authorities mete out punishment.
Japan offers many gambling experiences; however, casinos as such are not permitted. The Japanese government lottery is the largest single lottery in the world in terms of revenues. There is also horse racing. Unique forms of gambling include pari-mutuel wagering on bicycle and motorboat racing. Although there are no gambling halls with casino table games, there are 18,000 gambling halls featuring machines. Most of the machines are pachinko machines (see Japan and Pachinko). <

Aruba has been the most successful casino jurisdiction in the southern Caribbean. The island, now an independent nation, lures tourists who enjoy the warm climate along with gaming opportunities. Casinos reach into South America, particularly to Venezuela, for players. Many people also come to Aruba from the United States via the gambling junkets offered by the casinos. The lack of adequate lodging, however, limits the potential for gaming development. Profit margins are small, as expenses are very large. Also the government extracts a 2 percent drop tax, meaning that when a player buys $100 in chips, the casino is obligated to pay a tax of $2. That amount is rather high. In addition, there is a gross gaming tax.
The casinos of Aruba are self-regulated; the island nation has no gaming board. The Ministry of Justice provides inspectors who monitor the doors of the casinos to ensure that no persons younger than eighteen years of age enter. <