Gambling taxes to your winnings are no longer exempt. Whilst you happen to is also a U.S. citizen you owe Uncle Sam a half, regardless if obtained here or in one other nation. The IRS considers all playing winnings taxable profits, even supposing it is an quantity that does no longer get reported to the IRS by the payer, appreciate that $20 grab on a scratch off label, or a lucky $250 when your numbers hit, even a $1,000 jackpot to your celebrated slot machine. Sadly, playing taxes are due.