Gambling taxes on your winnings are now now not exempt. Whilst you happen to is also a U.S. citizen you owe Uncle Sam a allotment, regardless if won here or in a international country. The IRS considers all playing winnings taxable income, although it be an quantity that does now not salvage reported to the IRS by the payer, like that $20 take dangle of on a scratch off impress, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your favorite slot machine. Sadly, playing taxes are due.