What are my U.S. tax refund options?

As of 2026, residents of the following countries are exempt from U.S. tax on gambling winnings: Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, the Netherlands, the Slovak Republic, Slovenia, South Africa, Spain, Sweden, Tunisia, Turkey, Ukraine, and the United Kingdom. Residents of Malta are taxed at a reduced 10% rate. Treaty exemptions for Hungary and Russia were terminated in 2024 — residents of those countries are now subject to the full 30% withholding.

Canada is not on the exemption list, but Canadian residents have a separate and valuable benefit: under Article XXII(3) of the US–Canada tax treaty, they may deduct U.S. gambling losses against U.S. gambling winnings.

Even without a treaty exemption, you may be significantly overtaxed. Following the landmark Park v. Commissioner decision and IRS Notice 2015-21, non-resident gamblers are entitled to calculate gains and losses on a per-session basis rather than a per-bet basis; for most slot machine players, this dramatically reduces the taxable amount and often results in a full or partial refund.

This is where cases like Free-Pacheco v. United States matter most — they show what a properly documented, professionally prepared refund claim looks like when the government pushes back.