You better believe it! When you gamble at legal USA offshore betting sites, it’s important to remember that you still have to pay federal income taxes on all your winnings. If you live in a state that levies a state income tax, you will have to report your winnings there, as well. These legitimate online casinos and betting sites may be offshore, but when you cash out your earnings, that counts as income stateside. As long as Uncle Sam gets his cut, you’ll get to keep yours!