Playing taxes on your winnings are no longer exempt. If you are a U.S. citizen you owe Uncle Sam a part, regardless if acquired right here or in a foreign country. The IRS considers all playing winnings taxable profits, even supposing or no longer it’s an amount that would no longer rep reported to the IRS by the payer, be pleased that $20 earn on a scratch off rate, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your current slot machine. Sadly, playing taxes are due.