Poker Rake Explained: What It Means & Why It Might Be Illegal

Ever wondered why the house still earns money at the poker table, even when you are only playing against other players? The answer is rake, a small fee charged for running the game.

You will encounter rake in both online rooms and live card rooms. It often feels invisible hand to hand, yet over time it can shape your results.

Below, we explain what rake is, how it is calculated, and why legality matters. By the end, you will know what to expect at the table and how to spot when something is not quite right.

What Is Poker Rake?

Poker rake is the fee that casinos or online poker sites take from each cash game pot or tournament buy-in. It is how the operator earns money for providing the game, since they are not playing the hands themselves.

In live cash games, dealers remove a few chips from the pot. Online, the software deducts a set percentage and applies a maximum limit so the fee does not keep rising as the pot grows. In tournaments, rake appears as a flat fee built into the buy-in.

Why Do Casinos Take a Rake?

Casinos and poker sites provide the venue, software, staff, security, and payments that make poker possible. Rake covers those costs and provides a margin so games can run reliably.

Without that income, there would be little reason for an operator to offer poker, maintain tables, or invest in fair dealing and player safeguards.

How Is Rake Calculated?

Rake rules vary by room and stake. In cash games, it is usually a percentage of the pot taken once the flop is dealt, with a cap so no one hand becomes too expensive for the winner.

For tournaments, it is a fixed fee included in your entry, shown as two amounts, such as £10 + £1. The larger number goes into the prize pool and the smaller amount is retained by the house.

That covers the basics of the numbers. What about the legal side of taking rake?

Why Might Poker Rake Be Illegal?

In the UK, only licensed operators can charge rake. Collecting it outside that framework, for example at an unlicensed private game, can breach gambling law. Unregulated games do not meet required standards for fairness, customer funds, or dispute handling, which puts players at risk.

What Do UKGC Rules Say?

The UK Gambling Commission sets rules designed to protect players and keep games fair. Only licensed venues and websites may charge rake, and the fees must be clear and not misleading.

Before you play, make sure the game is run by an operator that holds a UK licence. This helps ensure that the game is lawful and that any issues can be handled through proper channels.

What Is Poker Rake And How Does It Work?

As explained earlier, rake is the fee a poker room collects for running the game. In practice, it works a little differently across formats and stakes.

In cash games, most rooms take a small percentage from eligible pots and stop at a cap, for example 5 percent with a maximum of a few pounds. Some online rooms round to the nearest penny and exclude very small pots. Live rooms often wait until the flop is seen before taking anything, which avoids charging on hands that end pre-flop.

In tournaments, rake is included in the buy-in, such as £20 + £2. The full £20 goes to prizes and the £2 is retained by the operator. For satellites, Sit & Go events, or re-entry formats, the same principle applies, and the fee is collected each time you register.

Knowing these mechanics helps you read a lobby or table sign and immediately understand the cost of playing there.

Common Rake Models Used In Cash Games

Poker rooms and websites use a few different ways to collect the rake in cash games. Here are the most common models you will come across, along with how they feel at the table.

Pot Rake

This is the standard model. A small percentage is taken from each pot once the hand reaches a certain stage, usually the flop, and it stops at a cap. It scales with pot size, which tends to feel fair in mixed-action games.

Fixed Fee

Some places charge a set amount for every hand dealt, regardless of pot size. It is less common and can suit fast, small pots, but it may feel heavy if many hands end quickly for minimal pots.

Time Collection

Instead of charging per pot, some rooms collect a set fee at regular intervals, for example every 30 minutes. You might hear this called time rake or a table fee. It is popular in higher-stakes games where pots are large and players prefer a predictable cost.

No Flop, No Drop

Under this rule, no rake is taken unless the hand reaches the flop. If everyone folds pre-flop, nothing is collected. It encourages action without charging for hands that never really get started.

How Is Rake Taken In Poker Tournaments?

In tournaments, rake is not taken from individual pots. It is built into the entry fee you pay to join.

Buy-ins are shown with two amounts, such as £20 + £2. The first amount funds the prize pool and the second is the fee retained by the house. This means you can see the cost of entry clearly and there are no extra deductions during play.

Because the fee is paid upfront, budgeting is straightforward whether you are entering a one-off event, a Sit & Go, or a satellite.

How Much Rake Do Players Normally Pay?

It depends on the format, stake, and venue.

In most online and live cash games, the rake is typically around 2.5 percent to 5 percent of the pot, capped at a set amount, often between £1 and £5 per hand. Lower-stakes games may have smaller caps to keep participation affordable, while higher-stakes tables might use time collection instead.

For tournaments, the rake is usually between 5 percent and 10 percent of the buy-in, so a £20 entry often includes £1 to £2 in fees. Larger live events sometimes charge a little more to fund staff and production costs for multi-day play.

Checking the posted structure before you sit down helps you plan your budget and compare games like for like.

Why Do Operators Charge Rake?

Beyond simply covering the costs of a room and a dealer, rake funds the systems that keep poker running well. That includes software development, card shuffling and game integrity tools, payment processing, customer support, and compliance checks that licensed operators must perform.

It also supports promotions, tournament series, and long opening hours that give players more choice. In short, the fee is what allows an operator to offer secure, properly run games over the long term.

When Might Poker Rake Be Considered Illegal?

Rake is only lawful in the UK when it is taken by a licensed operator. If a person or venue collects a fee for hosting a game without the correct licence, the activity is illegal, even if all players consent.

This risk often arises in private or underground games where an organiser takes a cut of pots or entry fees. It can also arise in pubs, clubs, or private homes if the organiser profits from the game without the appropriate authorisation. Social games are different, but only where there is no rake and no profit for the organiser beyond very limited, permitted stakes and prizes.

Playing in an unlicensed game leaves you without regulatory protection, and organisers may face serious penalties.

How Does UK Law Treat Poker Rake?

UK law is straightforward on this point. Only licensed casinos, poker rooms, and online sites may charge rake. Doing so in an unlicensed setting, such as a private home or a pub without the right permissions, is unlawful.

Licensed operators must be transparent about their fees and apply them as advertised. Players should be able to see the rake structure in the lobby, on table signage, or in the tournament details, and venues usually display licensing information on site or in the website footer.

If you are unsure, check the licence details or ask staff to confirm how the game is regulated before you play.

How Can Players Challenge Unfair Rake Or Disputed Fees?

If a fee looks higher than advertised or a deduction does not match the posted structure, the usual path is to raise it with the operator. Customer support should provide a clear breakdown of how the rake was calculated for a hand or event.

Every licensed operator must offer a formal complaints process. If the initial response does not resolve things, the matter can move through that process and, if needed, on to an independent Alternative Dispute Resolution service approved by the UK Gambling Commission. Serious concerns about unlawful or misleading practices can also be reported to the regulator.

Keeping records of hand histories, receipts, or screenshots helps everyone review the facts quickly.

Rake Transparency: What Players Should Look For

You should never have to guess how rake works at a table. Before you play, look for clear, accessible information on cash game percentages and caps, and on tournament fees. The way rake is applied, the maximum taken per hand, and any conditions such as no flop, no drop should be easy to find and understand.

There should not be hidden deductions beyond what is posted. If anything is unclear, ask support to explain it in plain terms. A licensed operator should answer directly and make the details available in writing.

A little checking up front makes it easier to compare rooms, pick games that suit your budget, and focus on the decisions that matter at the table. Understanding how rake works, and where it is allowed, leads to a safer and more informed playing experience.

_{*All values (Bet Levels, Maximum Wins, etc.) mentioned in relation to these slot games are subject to change at any time. Game features mentioned may not be available in some jurisdictions.}