Playing taxes on your winnings are now now not exempt. In case you are a U.S. citizen you owe Uncle Sam a fraction, regardless if obtained right here or in one other nation. The IRS considers all gambling winnings taxable income, even supposing it’s an amount that does now now not decide up reported to the IRS by the payer, like that $20 decide on a scratch off designate, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your licensed slot machine. Sadly, gambling taxes are due.