The basic strategy of a traditional blackjack game can be best explained by an illustration with certain parameters. So if a game of blackjack is in progress where the game table has three or more card decks in use, the dealer is required to stand and lock his hand value when his total is a soft 17, doubling down is permitted on any two cards, the double after split rule is allowed, the dealer is permitted to view his hole card without revealing it to any other participating player in order to check if he has a blackjack hand, and the payout for a blackjack or natural is 3-to-2.

If all these parameters are fulfilled, then the basic strategy that a player can optimally follow to emerge as a winner in the long run and make sizeable profits from this gambling game is essentially three-fold. Depending on whether the player’s hand strength has an aggregate of a hard total or a soft total and whether the player holds a pair as his two initial cards, the basic strategy needs to be adapted accordingly.

If both the player and the dealer has a blackjack hand, without going for an insurance wager, the player neither ins nor loses any money as the hand results in a tie or push. But if the player had accepted the insurance bet it would mean he would win the 2-to-1 wager and for staking $25 on insurance wins $50 back. Since his original bet was also $50, the player wins even money. The only other situation that can happen otherwise is when the player’s blackjack cannot be matched by the dealer whose hoe card turns out not to be any ten-valued card. Now if the player had not chosen insurance but played normally, he would win $75 for the $50 he had staked according to the 3:2 payout rule. But in case he had bought the insurance, then now he loses the $325 for that wager but still wins $75 for his original bet which means he ends up with $50 net winnings, the same amount he had staked and so gets even money.

Even money situation is apparently advantageous since the player breaks even on his bet, regardless of the dealer having a blackjack. However, in the long run blackjack players stand to make more profits if they play for the original bet with payout offering 3:2 winning odds although it can lose him money on several occasions. Many players who are cautious and try avoiding losses in the short term prefer to accept even money when offered. But a basic strategy player never opts for insurance or even money and plays for long term unless he is a professional gambler with card counting skills and can turn the situation profitable and emerge winner.

Now if the dealer has a blackjack hand but the player doesn’t have such a hand and he had opted for insurance, he loses his original $50 but from insurance, wins $50 (=2:1) and so neither gains nor loses any money. Of course if he had not taken the insurance wager he stood to lose his initial $50, which would be his net loss for that hand of play. In case the dealer does not have a blackjack, but at showdown the player wins the hand then he breaks even on his bet and gets $50 if he had not opted for insurance. But if the player had chosen insurance, then the player loses the wager of $25 but wins $50 for his hand, so gets a net $25 from the situation.

In another situation that may arise the dealer may not have a blackjack but his hand value is same as the player’s, then the player would be tied and pushing, which means he neither gains nor loses on his original $50 if he has not taken the insurance wager. But if the player had accepted the insurance bet, this situation would lose him the $25 insurance bet which would amount to his net loss in that hand of play. Now if the player loses to the dealer who did not have a blackjack as his winning hand, then the player would lose the original $50 for not going for insurance bet. However, if he had opted for insurance, he loses both the insurance wager of $25 and the original bet of $50 and has a total loss of $75.

It can be seen that in a game played with a single card deck, there are 16 possible ten-valued cards. if it is taken that a player has not seen any card in that deck, including the cards he himself has been dealt, the possibility of finding one ten-valued card among the 51 cards remaining (since the dealer already has an ace card) is 16 out of 51 or 3.13725%. Interestingly, the insurance wager can be a break-even bet for a player if the dealer’s hole card turns out to be a ten-valued card one out of three times, that is, 33.33% but the possibility is only 3.13725%.

Now if the player has a blackjack hand and the dealer has the ace card as his up card, instead of insurance the dealer offers even money to the player. The player has the choice of accepting the offer and get immediately a payout of 1:1 without depending on whether the dealer’s hand turns out to be a blackjack or not. It can be seen that accepting even money guarantees the same payout to the player as accepting the insurance wager. For, if the dealer doesn’t have a blackjack, the player would lose his 2:1 insurance bet but win 3:2 original bet for having a natural hand. Again, if the dealer has a blackjack, the original wager is tied or pushed, but the player wins 2:1 for the insurance.

Similar to insurance bet, even money situation is not a beneficial proposition for any player who does not engage in card counting which only can tell him if the card deck has a high number of possible ten-valued card or not.

In a blackjack game, players are given the alternative to opt for insurance if the dealer’s face up card is an ace. If a player wishes to accept it, he must pay an insurance bet which is usually half the amount of the original bet staked by him and this wager is to be placed in the betting circle in the zone marked out for it. Now if the dealer have a ten-valued card and becomes a blackjack hand, the player who paid the insurance wager wins it and gets a payout of 2-to-1 on it. Now, if the player himself has a blackjack the outcome of the hand of play is a push or a tie. If the player loses to the dealer’s blackjack hand, he only loses his original bet but by winning the insurance wager, he gets the chance to break even. Since the player stands neither to gain nor to lose money even with the dealer having a blackjack, this type of bet has been termed ‘insurance’ and it acts as a form of protection against losing one’s bet against the dealer’s blackjack.

The catch in the concept of insurance bet is that if the dealer’s hand is not a blackjack, which is the case most of the occasions, the player who had staked the wager loses it although his original bet is still open and he can make a profit from it if he has the winning hand in subsequent play.