Playing taxes in your winnings are now now not exempt. Whenever you may perchance be a U.S. citizen you owe Uncle Sam a part, regardless if received right here or out of the country. The IRS considers all gambling winnings taxable income, despite the true fact that it be an amount that would now not get reported to the IRS by the payer, worship that $20 get on a scratch off ticket, or a lucky $250 when your numbers hit, even a $1,000 jackpot in your authorized slot machine. Sadly, gambling taxes are due.