Gambling taxes on your winnings are no longer exempt. While you are a U.S. citizen you owe Uncle Sam a half, regardless if obtained here or in a foreign nation. The IRS considers all gambling winnings taxable profits, despite the indisputable truth that it be an amount that does no longer rating reported to the IRS by the payer, adore that $20 seize on a scratch off mark, or a fortunate $250 when your numbers hit, even a $1,000 jackpot on your accepted slot machine. Sadly, gambling taxes are due.