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Overview - Rules of Perudo
Perudo is a classic bluffing dice game with origins in South America. Also known as Liar's Dice, the game gained exposure and popularity thanks to its prominence in the film Pirates of the Caribbean: Dead Man's Chest.
People familiar with the card game Bluff/Cheat (which often goes by the initials "B.S.") already have a good handle on the rules of Perudo. Each player begins with 5 dice, and usually a cup to shake them in as well. The goal of Perudo is to be the last person with dice remaining.
A turn of Perudo is simple: each player shakes their dice in the cup, then turns over the cup on the table. Players keep their dice concealed from other players, but are allowed to look at their own dice. Each player then bids on how many of a given pip are present under all the cups on the table. Bids must increase (explained in detail later) as they go around the table. Eventually someone wlll find a bid questionable, and call out "Dudo" (Spanish for "I doubt). At that point everyone reveals their dice and players find out whether the bidder or the doubting player was correct. The loser loses one of their dice, and the game continues.
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Each bid must be higher than the previous bid. You can change the number that is being bid on. If the previous bid is "two fives," you have a couple options. If the number on the die is going up, the amount of dice with that number may remain the same in the bid. It sounds confusing, but that means you could bid "two sixes." However, you cannot bid "two fours" in this case, but may bid "three fours" if you want. You can also bid as high as you want, which can make things hard for the person who must bid after you!
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Ones are wild. A turn may never begin with a bid of ones (except in Palafico, later) but you can change a bid to ones, but it's special. To bid ones, you can go as low as half (rounded up) of the last number called. If the last bid was "five threes" you can bid "three ones."
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Around here Palafico is known as the "Uno Round." When any player gets down to one die, a special turn happens. Whatever die number that player begins the bidding with cannot be changed, and the player can begin the bidding with ones if they like. For instance, if the Palafico player begins the bidding at "two fours," every bid after that must be for fours.
A player only gets one Palafico round per game. If they survive that round, play goes back to normal.
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For More Information and Rules Clarifications
These rules of Perudo are enough to get you going without missing anything important. If you'd like a complete set of official rules or just have questions, here are some great resources for more information on Perudo:
BoardgameGeek's Liar's Dice page has a Rules Forum where people talk about rules questions.
Printable Quick Perudo Rules Reference
Both images courtesy amazon.com and copyright their respective owners.