In the Ottoman Empire, until the 19th century, meyhanes run by Rûm (Greeks) and Albanians would mainly serve wine along with meze, due to religious restrictions imposed by various sultans. Although there were many Muslims among meyhane attendants, the authorities could, at times, prosecute them. With the relatively liberal atmosphere of the Tanzimat period (1839–1876), meyhane attendance among Muslims rose considerably, and raki became a favorite among meyhane-goers. By the end of the century, raki took its current standard form and its consumption surpassed that of wine.
During this period, rakı was produced by distillation of grapes pomace (cibre) obtained during wine fermentation. When the amount of pomace was not sufficient, alcohol imported from Europe would be added. If aniseed was not added, it would take the name düz rakı ("straight rakı"), whereas rakı prepared with the addition of gum mastic was named sakız rakısı (gum rakı) or mastikha.
With the collapse of the Ottoman Empire and the establishment of the modern-day Republic of Turkey, grape-based rakı began to be distilled by the state-owned spirits monopoly Tekel, with the first factory production taking place in 1944 in Izmir. With increasing sugar beet production, Tekel also began to distill the alcohol from molasses, and a new brand of raki made from sugar-beet alcohol was introduced under the name Yeni Rakı ("New Rakı"). Molasses gave Yeni Rakı a distinctive bitter taste and helped increase the drink's popularity.
Today, with increased competition from the private sector, and the privatization of Tekel in 2004, several new brands and types of raki have emerged, each with its own distinct composition and production method, although the overall qualities of the drink have generally been kept consistent. These include Efe Rakı, Çilingir Rakı, Mercan Rakı, Fasıl Rakı, Burgaz Rakı, Ata Rakı, and Anadolu Rakı. Sarı Zeybek Rakısı, another recent brand, is aged in oak casks, which gives it a distinctive golden colour.