Gambling taxes on your winnings are no longer exempt. If you happen to are a U.S. citizen you owe Uncle Sam a part, regardless if won here or in one more nation. The IRS considers all playing winnings taxable earnings, despite the incontrovertible truth that or no longer it is an quantity that would no longer derive reported to the IRS by the payer, esteem that $20 purchase on a scratch off impress, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your approved slot machine. Sadly, playing taxes are due.