Gambling taxes for your winnings are now not exempt. When you are a U.S. citizen you owe Uncle Sam a fragment, regardless if won here or in a foreign country. The IRS considers all gambling winnings taxable earnings, even though or now not it is an amount that would now not catch reported to the IRS by the payer, love that $20 hold on a scratch off ticket, or a lucky $250 when your numbers hit, even a $1,000 jackpot for your popular slot machine. Sadly, gambling taxes are due.