Gambling taxes to your winnings are no longer exempt. If you are a U.S. citizen you owe Uncle Sam a share, regardless if gained here or in one more country. The IRS considers all playing winnings taxable income, even supposing it be an quantity that does now not procure reported to the IRS by the payer, love that $20 spend on a scratch off rate, or a lucky $250 when your numbers hit, even a $1,000 jackpot to your licensed slot machine. Sadly, playing taxes are due.