As is often the case, federal and state governments single out casino winnings for unique taxes of their own. Examples are Social Security and state disability payments. I was paid out a prize of just over in a Pennsylvania casino. Others charge a flat percentage, while still others ramp up the percentage owed depending on how much you won. Same question for slots.The following rules apply to casual gamblers who aren't in the trade or business of gambling. Gambling winnings are fully taxable and you must report the. Withholding and Estimated Tax for further information. l For more information on reporting gambling winnings and losses go to casino-bestage.xyz and enter “gambling”. Report any gambling winnings as income on your tax return. Be sure you itemize to deduct gambling losses up to the amount of your winnings.