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In most U.S. casinos, insurance is allowed. Prior to playing any hands, if the dealer's upcard is an ace, he will ask, "insurance?" To understand this option, you must know that if the dealer's first two cards are an ace and a ten-valued card—blackjack—he will automatically beat every player hand on the table except for another blackjack, which would push his hand.
So, when the dealer shows an ace upcard, the player hands are in danger. By offering insurance, the dealer gives the players a chance to make a side-bet that he has a natural, i.e., a ten-valued card in the hole. Note the specially marked area on the table layout for insurance bets. If the player is willing to bet that the dealer does, in fact, have a ten-valued card in the hole, for a blackjack, the player places an amount of money equal to up to one-half his original bet in the insurance space. So, if a player has $10 bet on the hand, he may make an insurance bet of up to $5, but no more.
After all insurance bets are placed, the dealer peeks at his hole card. If he has a natural, he immediately turns it up and proceeds to pay off insurance bets, and to collect all original wagers placed by the players. Since insurance bets are paid at the rate of 2 to 1, a player with a $10 original bet, and a $5 insurance bet, would lose his original $10, since the dealer's natural is an automatic win, but would be paid $10 (2 to 1) for his $5 insurance bet. Thus, the player breaks even.
If a player has a blackjack when the dealer has an ace up, instead of offering insurance, the dealer usually offers "even money" to this player. This means that before the dealer checks his hole card, the player may accept an even money win for his blackjack. Many players do not understand that an offer of even money is identical to an offer of insurance when a player has a blackjack.
This is because a player who takes insurance when he has a blackjack will ultimately be paid even money whether or not the dealer has a ten in the hole. Consider: with $10 bet on your blackjack hand, and a $5 insurance bet, if the dealer does not have a ten in the hole, then you'll lose your $5 insurance bet, but win $15 (1 1/2 to 1) for your $10 blackjack hand. That's a net win of $10, or even money.
On the other hand, if the dealer does have a ten in the hole, then you win $10 (2 to 1) on your $5 insurance bet, but push on your $10 blackjack hand, again for a net win of $10—even money. So, if you have a blackjack, an offer of even money is the same thing as an offer of insurance.
If the dealer doesn't have a natural, he immediately collects all insurance bets, and the play of the hands resumes, starting with the first base player and working clockwise. In some casinos, dealers do not check their hole cards or settle insurance bets until after the play of the hands.
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The dealer shuffles the deck or decks, and then offers the shuffled cards to be cut by a player. Sometimes, in hand-held games, games where the dealer physically holds the cards in his hands when he deals, this cut is done exactly as in any home game. The dealer sets the cards on the table, and a player simply cuts a portion of the cards from the top of the deck onto the table. In all shoe games, games where the cards are kept in a plastic device known as a shoe, however, and in most hand-held games, a "cut card" is used. The is a specially colored card that a player inserts into the deck to indicate the cut point, where the dealer then completes the cut.
After the cut, the dealer burns a card, and sometimes multiple cards. This means that he removes the top card(s) to the bottom of the deck in a single-deck game, or into the discard tray in a shoe game.
Before any cards are dealt, all bets must be placed. Each player has a betting spot on the table on which his wager is made. The dealer then deals two cards to each player. The players' cards may be dealt face up or face down. In hand-held games, facedown is more common, while in shoe games face-up is typical. Since players do not play against each other, but only against the dealer, and since the dealer must play his hand according to preset house rules regardless of what any player holds, it makes no difference for most basic strategy players if the hands are dealt face up or face down. If the cards are dealt face up, players are not allowed to touch their cards. If dealt face down, each player must pick up his two cards in order to see his hand and make his playing decisions.
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