Gambling taxes on your winnings are no longer exempt. Whereas you are a U.S. citizen you owe Uncle Sam a fragment, regardless if won here or abroad. The IRS considers all playing winnings taxable earnings, even though it be an amount that would now not rating reported to the IRS by the payer, contend with that $20 take on a scratch off mark, or a fortunate $250 when your numbers hit, even a $1,000 jackpot on your favourite slot machine. Sadly, playing taxes are due.