Gambling taxes in your winnings are no longer exempt. When you occur to are a U.S. citizen you owe Uncle Sam a part, regardless if won right here or in one more nation. The IRS considers all gambling winnings taxable income, even when it be an quantity that does no longer get reported to the IRS by the payer, savor that $20 preserve shut on a scratch off ticket, or a lucky $250 when your numbers hit, even a $1,000 jackpot in your celebrated slot machine. Sadly, gambling taxes are due.