The house edge calculation for baccarat is based on the probability of each outcome. For the “banker” bet, the house edge is 1.06%, for the “player” bet, it’s 1.24%, and for the “tie” bet, it’s a significant 14.36%. In roulette, the house edge is calculated based on the number of slots on the wheel, with a 2.70% edge for European roulette and a 5.26% edge for American roulette.