The evolution of the game of baccarat

TL;DR

This paper traces the historical evolution of baccarat from a 19th-century parlor game to a modern casino game, highlighting changes in gameplay, strategy, and economic impact over time.

Contribution

It provides a comprehensive analysis of baccarat's transformation, emphasizing the interplay of economic factors and game theory in its development.

Findings

Baccarat evolved from a three-player to a house-competitive game.

The game shifted from zero-sum to non-zero-sum and nonstrategic forms.

The game generated over US$41 billion in Macau in 2013.

Abstract

The game of baccarat has evolved from a parlor game played by French aristocrats in the first half of the 19th century to a casino game that generated over US\$41 billion in revenue for the casinos of Macau in 2013. The parlor game was originally a three-person zero-sum game. Later in the 19th century it was simplified to a two-person zero-sum game. Early in the 20th century the parlor game became a casino game, no longer zero-sum. In the mid 20th century, the strategic casino game became a nonstrategic game, with players competing against the house instead of against each other. We argue that this evolution was motivated by both economic and game-theoretic considerations.