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Poker Rake Explained: Is It Illegal?

You might have noticed that every time you play poker online or at a casino, there is a small fee taken from the pot. This fee is known as the rake, and it is something many players come across without fully understanding what it really means. Whether you are playing for fun or looking into the finer details before joining a game, knowing how the rake works is important.

There is often confusion about whether paying a rake is above board. The idea of money being taken out of your winnings can sound dodgy, especially if you are new to the world of poker. You might even wonder if it is against the law or falls into a grey area.

This blog post will walk you through exactly what the poker rake is, how it is collected by poker rooms and sites, and, most importantly, where the law stands in the UK. If you want a straightforward explanation that cuts through the jargon, you are in the right place. Keep reading to get clear answers without any fuss.

What Is Poker Rake?

Poker rake is the fee that a poker room or casino takes for running the game. It is usually a small percentage taken directly from the pot during cash games. Think of it as the venue’s way of covering its costs, whether you are playing online or at a physical table.

You will most often see this in cash games where, after each hand, the house takes a fixed amount or a percentage from the total pot. For example, if you win a hand and the pot is £20, a small part, say £1, might go to the poker room as the rake, while the rest goes to the winner.

In tournament poker, the rake is not taken from each individual pot. Instead, it is included in the entry fee. For instance, if you join a tournament with a £10 buy-in, you might notice it is shown as £9+£1. The extra £1 goes to the organiser as their fee for hosting the event.

Rake amounts and the way it is taken can differ from one poker site or casino to another. Many rooms also set a cap, which limits how much can be taken from any single hand. This keeps costs predictable for players. So how do rooms work out the exact figure in cash games?

How Is Rake Calculated In Cash Games?

In poker cash games, the rake is often worked out as a small percentage of the pot on each hand. A typical range is 2% to 5%. For example, if the pot reaches £40 and the rake is 5%, the house would take £2 as its fee.

Most rooms also apply a cap, which is a maximum amount that can be taken from one pot. Even if the pot grows large, you might only ever pay up to £3 or £4 per hand, depending on the table limits and the venue’s rules. Some places use a sliding scale where smaller pots are raked at a lower rate and larger pots reach the cap more quickly.

Rake is usually only taken from hands that reach a certain point. If the action ends immediately, or there is no meaningful betting beyond the blinds, many venues do not take anything. This prevents tiny pots from being disproportionately affected.

That brings us to the two main ways rooms collect these fees, either from the pot or based on time.

Fixed Percentage Versus Time-Based Rake

There are two main ways poker rooms and online sites collect rake: the fixed percentage method and the time-based method.

With the fixed percentage method, a set percentage of the pot is taken whenever there is a winning hand, up to a cap. You pay more when the pot is bigger, but there is always a maximum. It is simple to follow, which is why it is the standard approach in most UK cash games.

The time-based method works differently. Instead of taking money from individual pots, the house charges a regular fee for the seat, such as every half hour or each hour. This can suit faster games or higher stakes, where players prefer a predictable charge that does not depend on the size of pots.

Whichever approach a venue uses, the outcome is similar for players, it changes what ends up in your stack over a session. So how noticeable is that effect?

How Does Rake Affect Player Winnings?

Rake directly reduces what the winner takes home from each pot, which adds up over time. If two players contest a £50 pot and the room takes £2 in rake, the winner receives £48. Across a long session, small deductions like this can make the difference between finishing up or down.

Tournament players feel it in a different way. Part of the entry fee pays the organiser rather than going into the prize pool. Two events that look the same on the surface can return different amounts to players, simply because the fee portion of the buy-in is higher in one than the other.

The key point is awareness. Understanding the rake where you play helps you judge the true cost of the game and compare venues fairly. Once that is clear, the next question is whether charging a rake is always allowed.

Why Might Rake Be Illegal?

Rake becomes a legal issue when it is collected in settings that are not authorised to offer gambling. In the UK, running a gambling activity, including poker, requires the correct operating licence. That framework exists to make sure games are conducted properly and that players are protected.

If someone runs a poker game and takes a fee from pots in a place without the right licence, such as a private home game or an unlicensed club, they are outside the law. Even a small per-pot deduction counts. By contrast, a friendly home game where no one charges a fee and all the money stays in the prize pool is generally fine.

The law views charging a rake as turning a social game into a commercial one, which brings strict rules into play. So how are those rules set out in the UK?

How Does UK Law Treat Poker Rake?

In the UK, collecting poker rake is only legal when the organiser holds the appropriate licence under the Gambling Act 2005. Licensed casinos and licensed online operators can charge rake because their games are overseen under that system, with clear rules on how fees are taken and displayed.

Home games are treated differently. Playing with friends is permitted, but if anyone takes a fee or slices off part of the pot, it is no longer classed as a private social game. Without a licence, that type of rake collection is not lawful.

Clubs and community venues sometimes host poker nights. These can be allowed if they follow the Commission’s guidance, which means any charges only cover reasonable costs and do not create a profit. Taking a rake for gain would breach those rules.

If you want to check whether a venue or site is licensed, you can search the public register on the Gambling Commission website. Legitimate operators make their details easy to find.

What Should Players Do If They Suspect Illegal Rake?

If you have doubts about how rake is being collected, it is sensible to leave the game and ask questions. Be cautious if fees are taken in a private setting or the organiser is not clear about their licensing status.

In the UK, you can ask a venue or website for its Gambling Commission licence details. Casinos and online operators should provide them without hesitation. If you cannot get a straight answer, or the setting looks informal yet a fee is still charged, treat that as a warning sign.

If you believe rake is being collected illegally, you can share your concerns with the Gambling Commission through its website, including any details that might help, such as the time, location or site address. Taking a moment to check protects you and other players.

Understanding how rake works, and when it is lawful, means you can choose where to play with confidence.

**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.