In terms of casino games with the lowest house edge, baccarat is right up there with blackjack. With optimum strategy, blackjack’s house edge can be reduced to 0.5%. On average, though, the game has a house edge of around 2%. Baccarat has a house edge of 1.06% and 1.24% on banker and player bets, respectively, with no strategy required. The bottom line is that baccarat is more profitable for recreational players.