Play begins with each player being dealt four cards face down. Each player may observe those four cards she is dealt, but not the cards dealt to other players. The hand begins with a “pre-draw” betting round, beginning with the player to the left of the big blind (or the player to the left of the dealer, if no blinds are used) and continuing clockwise. Each player must either call the amount of the big blind (put in an amount equal to the big blind), fold (relinquish any claim to the pot), or raise (put in more money than anyone else, thus requiring others to do the same).
Once everyone has put the same amount of money in the pot or folded, play proceeds to the draw. Beginning with the first player still in the pot to the left of the dealer, each player may discard any number of cards and receive an equal number of replacement cards (called the “draw”). Replacement cards are dealt before the next player chooses the number of cards to draw. The discarded cards are not readded to the deck but are discarded from the game.
The first draw is followed by a second betting round. Here players are free to check (not put in any money, but also remain in the hand) until someone bets. Again betting proceeds until all players have put in an equal amount of money or folded. After the second betting round ends, there is another draw followed by a third betting round. After that there is the final draw, followed by a fourth betting round and the showdown, if necessary.
If at anytime all players but one have folded, the sole remaining player is awarded the pot. If there are more than one player remaining at the conclusion of the final betting round, the hands of those players are compared and the player with the best badugi hand is awarded the pot.
Video: How to play Badugi – Part 2 of 4 (Poker Video)