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UK Poker Players Get Crushed: PokerStars Axes 65% Rakeback as Tax Hike Bites

PokerStars UK eliminates top reward tiers after government tax increase, capping rakeback at 40% and leaving players with higher costs

UK Poker Players Get Crushed: PokerStars Axes 65% Rakeback as Tax Hike Bites

PokerStars just delivered a gut punch to UK grinders. The site quietly removed its Select and Select+ reward tiers - the ones that offered up to 65% rakeback - and capped rewards at 40%. And that’s not even the worst part.

Players are reporting the rake requirements to earn rewards have also increased. So you’re getting less back while having to pay more to qualify. This isn’t some minor adjustment. It’s a fundamental shift in how UK players can make money online.

The culprit? The UK government’s Remote Gaming Duty tax hike that kicked in earlier this year. When politicians decided to squeeze more money from gaming operators, everyone knew players would end up paying. Now we’re seeing exactly how.

The Numbers That Matter

Here’s what UK players lost overnight. The Select tier offered 50% rakeback. Select+ went up to 65% for the highest volume grinders. These weren’t promotional rates - they were the backbone of how pros and semi-pros made their living.

Now? Maximum rakeback sits at 40% through the standard rewards program. But here’s where it gets sneaky. Multiple players on forums report needing to generate significantly more rake to hit the same reward levels. One reg who tracked his numbers said he’s paying about 30% more in effective rake to earn the same rewards.

Comparison of PokerStars UK rakeback before and after tax changes

That’s devastating math for anyone trying to grind out a profit. A winning player who previously cleared £2,000 monthly at Select+ rates might now struggle to break £1,000. Factor in the higher rake requirements, and some marginal winners just became losers.

How We Got Here

The UK Remote Gaming Duty jumped from 21% to 42% of gross gaming revenue in 2024. That’s not a typo - the government literally doubled the tax on operators. PokerStars and other sites initially absorbed some of the hit, but that was never sustainable.

When you’re paying 42% of revenue to the government before covering any other costs, something has to give. For PokerStars UK, that something was player rewards.

This follows a pattern we’ve seen across the industry. PartyPoker slashed its rewards program last year. Smaller operators have fled the UK market entirely. The ones staying are passing costs directly to players through reduced promotions, higher rake, and now gutted loyalty programs.

What This Really Means for Grinders

Let’s talk real numbers. Say you’re a solid reg playing NL100, generating £5,000 in monthly rake. Under Select+, you’d get back £3,250. Now at 40%, that’s £2,000 - assuming you even qualify for the top regular tier.

But it’s worse than losing £1,250 monthly. The increased rake requirements mean you might need to generate £6,500 to hit that same tier. So you’re paying an extra £1,500 to earn £1,250 less. That’s a £2,750 monthly swing.

UK online poker player value decline chart

For recreational players, this might not seem catastrophic. But for anyone treating poker as a serious income source, these changes are brutal. The UK was already one of the toughest regulated markets to beat. Now it might be impossible for all but the very best.

The Bigger Picture

This isn’t just about PokerStars or even just about poker. The UK’s approach to taxing online gambling is creating a death spiral. Higher taxes lead to worse conditions for players. Worse conditions drive players to unregulated sites. Less revenue for regulated sites means less tax collected. So governments raise rates again.

We’re already seeing UK players explore options. Some are using VPNs to access international sites - risky and potentially illegal. Others are moving their action to crypto poker sites like CoinPoker that operate outside traditional regulations.

The irony? By squeezing regulated operators, the UK government is pushing players toward the exact gray-market sites they claim to be protecting people from.

What UK Players Can Do Now

Your options aren’t great, but you have some. First, if you’re playing on PokerStars UK, maximize whatever rewards remain. The 40% cap is bad, but 0% is worse. Make sure you’re opted into every promotion and hitting the highest tier you can sustain.

Consider diversifying. 888poker still operates in the UK with their own rewards structure. Same with smaller sites. Shop around for the best effective rake after rewards.

If you’re serious about poker income, it might be time to explore live games. The London poker scene is thriving, and live rake hasn’t changed. Yes, the games play bigger and travel costs add up. But at least you’re not fighting a rigged system.

Some players are looking at relocating. Malta, Gibraltar, and other poker-friendly jurisdictions offer better conditions for serious grinders. That’s extreme, but when your livelihood is at stake, extreme might be necessary.

The Death of UK Online Poker?

Let’s not sugarcoat this. Between the tax hikes, reward cuts, and player exodus to unregulated sites, UK online poker is in trouble. We’re watching an ecosystem collapse in real-time.

PokerStars cutting rewards to 40% won’t be the last bad news. Expect more operators to follow suit or exit entirely. The player pools will shrink. Games will get tougher. The spiral continues.

For now, UK players need to adapt or find new games. Because hoping for a government tax reversal? That’s a bigger longshot than hitting a one-outer on the river.

The golden age of UK online poker is over. What comes next is anyone’s guess, but it won’t be pretty for players trying to grind out a living.

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