Gambling taxes on your winnings are no longer exempt. When you happen to are a U.S. citizen you owe Uncle Sam a share, regardless if won right here or abroad. The IRS considers all playing winnings taxable earnings, even if it be an quantity that does no longer salvage reported to the IRS by the payer, love that $20 take on a scratch off rate, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your well-liked slot machine. Sadly, playing taxes are due.