Gambling taxes on your winnings will now not be exempt. When you are a U.S. citizen you owe Uncle Sam a share, regardless if won right here or out of the nation. The IRS considers all playing winnings taxable earnings, even though it is an amount that doesn’t get reported to the IRS by the payer, savor that $20 take on a scratch off label, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your well-liked slot machine. Sadly, playing taxes are due.