A lottery is any scheme for allocating prizes in which the prize amounts depend on chance. The first state-sponsored lotteries were in the Low Countries in the 15th century, raising funds to build town fortifications and help the poor. The word probably comes from Middle Dutch lotinge or lotijk, a calque on Middle French loterie.

If you win a lottery, you can choose to take your after-tax winnings in one lump sum or receive them over the course of several years, in annual payments, often referred to as a “lottery annuity.” A lottery annuity may make more sense if you want to invest the proceeds and benefit from compound interest, but it can also protect winners from the temptation to spend their winnings all at once.

Lottery ads typically present buying a ticket as a minimal investment with the potential for a massive return, and this dynamic is central to triggering FOMO. If you’re thinking about buying a lottery ticket, consider reviewing your finances first, and be sure to track how you feel during the process. If you’re experiencing more anxiety than excitement, it may be a sign that you’re not ready for this type of indulgence.

In addition, it’s a good idea to consider hiring a financial team to support you after you win the lottery, including a financial planner, attorney for estate planning, and certified public accountant for taxes. This can ensure that you’re set up for long-term success and avoid pitfalls like a big tax bill or a failed business venture.