Badugi is a game of low, each player is dealt four cards down, and it is normally played with three draws. The deal begins in front of a Dealer Button with two players posting the small and big blind for the limit. The object of the game is to make the best possible low hand. Keep in mind that pairs and two cards of the same suit, remove one or more playable cards from your hand and a four card Badugi always beats a three or two card Badugi. Example: A-2-3-4 off suit is the best possible hand. A-A-2-4 is a three card hand because one of the Aces is out of play. The same would apply if the hand was As-2h-3h-4d because the 3h is out of play.
• Each player is dealt four cards down. On the first betting round, each player must fold, call, or raise and the Big Blind amount is the bet limit for the first and second betting rounds.
• After the action is complete, the first player discards the cards she wants replaced. Each player, in turn, discards before the dealer burns a card. (There is a burn before each draw). The dealer gives each player all of their cards at once (before dealing the next player's draw cards), announcing the draw of each player as the cards are being dealt.
• A second round of betting begins, with the same limit amount as the first round of betting.
• After the action is complete, each player discards in turn, and the dealer proceeds with the deal.
• A third round of betting begins; the limit amount of the big bet is in force during this round.
• After the action is complete, each player discards in turn, and the dealer proceeds with the deal. There are no more draws after this round.
• A fourth round of betting begins; the same limit amount as the last betting round. Cards are shown down to declare a winner.
See PokerWork's Poker Variants for more information and strategy on playing Badugi. Learn to play Badugi at PokerStars and Full Tilt Poker.
Published on http://pokerworks.com/poker-rules/badugi.html