Gambling taxes for your winnings are not exempt. While you occur to can also very wisely be a U.S. citizen you owe Uncle Sam a fraction, regardless if won here or in a foreign country. The IRS considers all playing winnings taxable income, despite the indisputable truth that it be an amount that would not get reported to the IRS by the payer, love that $20 steal on a scratch off stamp, or a lucky $250 when your numbers hit, even a $1,000 jackpot for your current slot machine. Sadly, playing taxes are due.