Gambling taxes on your winnings are no longer exempt. When you happen to are a U.S. citizen you owe Uncle Sam a part, regardless if gained here or out of the country. The IRS considers all playing winnings taxable earnings, despite the indisputable reality that it be an amount that does no longer salvage reported to the IRS by the payer, adore that $20 fetch on a scratch off designate, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your popular slot machine. Sadly, playing taxes are due.