Gambling taxes on your winnings are no longer exempt. If you are a U.S. citizen you owe Uncle Sam a portion, regardless if received here or in a foreign nation. The IRS considers all playing winnings taxable income, even if it be an quantity that does no longer obtain reported to the IRS by the payer, relish that $20 deal with a scratch off tag, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your accepted slot machine. Sadly, playing taxes are due.