However, you may be able to deduct gambling losses when you itemize your deductions.Certain special rules apply to gambling income and there are strict record keeping requirements required by the IRS. Gambling income isn't just card games and casinos it also includes winnings from racetracks, game shows, lotteries, and possibly even bingo. This means there there is no way to avoid paying taxes on gambling winnings. But even the winners can be losers if they don't pay their taxes! Any money you win while gambling or wagering is considered taxable income by the IRS as is the fair market value of any item you win. Cleyton Ewerton, gambling, there are winners and losers.