Gambling taxes for your winnings are no longer exempt. If you are a U.S. citizen you owe Uncle Sam a allotment, regardless if won right here or in but every other country. The IRS considers all playing winnings taxable profits, even though it is an quantity that does no longer gain reported to the IRS by the payer, like that $20 spend on a scratch off set, or a lucky $250 when your numbers hit, even a $1,000 jackpot for your favorite slot machine. Sadly, playing taxes are due.