Gambling taxes on your winnings are now now not exempt. Whereas you are a U.S. citizen you owe Uncle Sam a share, regardless if won right here or out of the country. The IRS considers all playing winnings taxable income, even though it be an amount that would now not acquire reported to the IRS by the payer, like that $20 capture on a scratch off brand, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your favorite slot machine. Sadly, playing taxes are due.