Gambling taxes on your winnings are now not exempt. In case that you just would possibly very smartly be a U.S. citizen you owe Uncle Sam a half, regardless if won right here or out of the nation. The IRS considers all playing winnings taxable earnings, despite the incontrovertible truth that it be an amount that would now not procure reported to the IRS by the payer, like that $20 have on a scratch off designate, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your favorite slot machine. Sadly, playing taxes are due.