I think I'd probably buy a couple homes (pay off my dump and square away my sister's). Second purchase would be a car... something a little extravagant, a little too pricey, a little too unreliable, maybe... a BMW or a 20 year old Toyota Supra or a big crappy muscle car from the 60s.
I did see an interesting stat on the lottery. People making <$13k / year average $900 on lottery tickets. I don't know if that is true but that could be one of the saddest things I've ever read if true.