Gambling taxes in your winnings are not exempt. If you happen to’re a U.S. citizen you owe Uncle Sam a fraction, regardless if acquired here or in a foreign country. The IRS considers all playing winnings taxable earnings, despite the indisputable truth that it is an amount that doesn’t bag reported to the IRS by the payer, fancy that $20 procure on a scratch off mark, or a lucky $250 when your numbers hit, even a $1,000 jackpot in your authorized slot machine. Sadly, playing taxes are due.