Abstract: Employing the Logarithmic Mean Divisia Index （LMDI） method, this study calculates the factors or subfactors including environment, industry and institution to the sales growth of the China sports lottery at the municipal level, compares the similarities and differences of the results in various years or periods and analyzes the relationship between the sales of the China sports lottery and the economic development or the sales of the China welfare lottery. The study indicates that, economic development is the most stable and consistent factor to the sales growth of the China sports lottery, without any "lipstick effect" in it; the China sports lottery has effectively utilized the advantages of a unified management system and achieved high-speed growth with the support of lottery regulatory authorities; the China sports lottery has not yet formed a significant substitution relationship with welfare lottery but precautions should be taken. It is suggested that, sports lottery institutions at all levels should practically implement the correct sales performance view, enhance the credibility of sports lottery and dispel public misunderstandings about lottery, and strengthen research on sports lottery to lead the high-quality development of the industry.