You are commenting using your Facebook account. Employer's Quarterly Federal Tax Return.gambling revenue in the uk ONLINE BUTCHERS AU If you gamble, these IRS tax tips can help you at tax time next year: Income from gambling includes winnings from the lottery, horse racing. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse Any other gambling winnings subject to federal income tax withholding. For more information on gambling income and losses, see IRS Publication IRS Summertime Tax Tip , August 31, Español. Report any gambling winnings as income on your tax return. Be sure you itemize.