Gambling taxes on your winnings are no longer exempt. If you happen to are a U.S. citizen you owe Uncle Sam a part, regardless if won right here or in a foreign country. The IRS considers all playing winnings taxable earnings, even when it’s an amount that would not bag reported to the IRS by the payer, like that $20 web on a scratch off mark, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your favourite slot machine. Sadly, playing taxes are due.