When we think of lottery, we typically think about the games that award huge jackpot prizes. But the term “lottery” can be applied to any competition where a prize is awarded based on chance, even if there are other factors involved in the process (like skill). So, whether it’s a reality show or an Instagram challenge, any contest that depends primarily on luck to determine the winner could be considered a lottery.

The casting of lots to decide fates or distribute property dates back millennia, with a number of cases recorded in the Bible. But the modern public lotteries we know and love began in earnest in the early 18th century, with lottery tickets sold in order to fund municipal repairs in Rome, for example. Later, the lottery spread to Britain and other European countries as well as the United States.

While winning the lottery might seem like a dream come true for many, experts warn that it’s not without risk. In fact, most people who win the lottery end up going bankrupt within a few years. This is because the average lottery winner ends up paying a 40% tax on their winnings, which can quickly devastate any large windfall. In addition, most of the money people spend on lottery tickets ends up going to commissions for lottery retailers and the overhead costs of running the lottery system itself.

A few lucky players can actually make a living from playing the lottery, but it requires massive amounts of time and attention as well as a steady supply of cash. For instance, a Michigan couple won over $27 million over nine years by purchasing thousands of tickets at a time. Their strategy was based on a simple math equation: The odds of winning are lower when you buy more tickets, so by buying in bulk and strategically selecting numbers, you can reduce your chances of losing while increasing the likelihood of hitting it big.

One of the biggest mistakes people make is not planning for how they’ll handle a large lottery win. For starters, many don’t have a budget or savings account that they can draw on in the event of a jackpot win. Furthermore, they often don’t consider the impact of state and federal taxes on their overall winnings.

Although the lottery might be great for state coffers, which swell thanks to ticket sales and winners, critics say that money comes at a price, with the cost borne by low-income people, minorities, and those with gambling addictions. Vox reports that study after study has found that lottery money is concentrated in poorer zip codes. As a result, it can be used to finance illegal gambling operations and fuel other types of social inequality.