Gambling taxes on your winnings are no longer exempt. If you are a U.S. citizen you owe Uncle Sam a half, regardless if won here or in another nation. The IRS considers all playing winnings taxable income, even though or no longer it is an quantity that does no longer gain reported to the IRS by the payer, like that $20 clutch on a scratch off tag, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your well-liked slot machine. Sadly, playing taxes are due.