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In the game of Blackjack, the term "cut" refers to the dealer allowing one of the players at the blackjack table to cut the deck - which means to divide the deck in half at the point selected by the player and then the two decks are then rejoined in the opposite manner.  This is meant to prove to the players at the table that the dealer is not setting up the deck illegally and that the game is fair - since the players may select many (but not all) places in the deck to cut it and half and then to put it back together with that mid position now the first card.

Of course since cutting the deck is meant for player protection against cheating, the house now will seek some protection against cheating by the player cutting the deck by burning one or more cards from the newly cut deck.

The sequence of events here in order is that after the deck or decks of cards are used up in the game, then the dealer first shuffles the deck - or has an automatic shuffler do it.  Then the dealer when done shuffling (unless using a continuous card shuffler) will often ask a player to select a spot to cut the deck by placing a brightly colored card in the deck where the player wants the deck cut.  Then that cut portion of the deck becomes the first card of the new deck, and the dealer will then burn one or more cards from the new deck at that point.  Then the dealer is ready to deal the next hands.


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