Playing taxes for your winnings are now no longer exempt. Whenever you happen to are a U.S. citizen you owe Uncle Sam a share, regardless if won here or out of the country. The IRS considers all playing winnings taxable earnings, even supposing it is an quantity that does now no longer salvage reported to the IRS by the payer, like that $20 hang on a scratch off label, or a fortunate $250 when your numbers hit, even a $1,000 jackpot for your current slot machine. Sadly, playing taxes are due.