Insurance protects the player against a dealer’s blackjack. It’s offered whenever the dealer’s up card is an ace.

• The player can put as much as 1/2 of his original bet on the table’s insurance line.

• If the dealer has blackjack, the player loses his original bet but wins $2 for every $1 of insurance, thereby breaking even.

• If the dealer does not have blackjack, the player loses his insurance and play continues normally.

This sounds like a good deal, but insurance gives the house an 8% advantage over the player since the odds of the dealer having blackjack are 31% — based on there being 16 ten-point cards in a deck of 52 cards — and the payoff is only two to one.

(The casino’s 8% edge is calculated using expected value which adjusts the potential win-loss amounts by their associated risk. More on this later.)

Even money gives the player a chance to receive a one-for-one payoff for his blackjack rather than nothing if he ties with the dealer. It’s offered when the player has blackjack and the dealer up-card is an ace.

• If the player accepts the offer, he immediately receives a 1-for-1 payoff rather the normal 3-for-2 blackjack payoff.

• If he refuses, play continues, potentially resulting in a a tie if the dealer has blackjack or in the player receiving the 3:2 payoff if he does not.

This sounds reasonable, however, taking even money in a 3:2 game gives the house a 4% edge over the player since the probability of the dealer having blackjack is 31% (15 out of 48 cards) with a 1.5-to-one payoff and the probability of the dealer not having blackjack is 69% with a one-for-one payoff.

(The casino’s 4% edge is calculated using expected value which adjusts the potential win-loss amounts by their associated risk. More on this later.)

The folklore with even money is that the player should always take it to avoid a push; after all, it would be a shame if the player received nothing for his blackjack, right?

• Wrong, this decision should be made on a risk-return basis not on how the player will feel if he loses.

• This misplaced righteousness even spawns moral indignation from players who think that greed is motivating the player’s refusal.

Surprisingly, taking even money in a 6:5 game gives the player a 20% advantage over the dealer.

This is because the probability of the dealer having blackjack is 31% (15 out of 48 cards) but with only a 1.2-to-one payoff, and the probability of the dealer not having blackjack is 69% with a one-for-one payoff.

(The players 20% advantage is again calculated using expected value which adjusts the potential win-loss amounts by their associated risk. More on this later.)

Side bets are long shots with bad odds …like a lottery.

• There are many different side bets offered at blackjack tables.

• They make use of the cards dealt in the blackjack game, but they have nothing to do with the blackjack game itself.

• For example, the player wins the side-bet game “21+3” when his first two cards and the dealer’s up card form a flush, straight, or three-of-a-kind.

• The player wins the side-bet game “Royal Match” when he has a suited pair in his initial blackjack hand (e.g., two queens of hearts).

Stay away from side bets.

• The odds against the player winning a side bet are usually far too high for the return.

• For example, the house’s advantage with “21+3” is 3.24%, with “Royal Match” it’s 3.7%, and with “Super Sevens” it’s 12%.

• These are many times greater than the typical 0.5% house edge of the blackjack game itself.

Side bets do have one redeeming virtue — they offer a large payoff for a small bet…like a lottery. Accordingly, if you want to play a lottery while you play blackjack, go ahead … but, don’t let side bets distract you from the blackjack game, and don’t comingle your side-bet bankroll with your blackjack bankroll if you want to walk away a winner at blackjack.

Blackjack players hates the lower 6:5 blackjack payoff. However, sometimes the high minimum (e.g., $25) for the 3:2 game prevents players from playing the 3:2 game. If your basic strategy is error free, go ahead and play the 6:5 game. The negative impact of the added 1.39% house edge due to the 6:5 payoff is relatively small. Don’t play if you still make basic strategy errors.