Abstract: Driven by the construction of Hainan Free Trade Zone, China's sports lottery has ushered in new opportunities for development. However, due to the tardy regulatory framework and legislative system, the development of sports lottery in China is facing great legal risks. It is suggested that: a stable, foreseeable, and prospective legal system around the Lottery Law can be established so as to properly handle new types of cases; the power distribution of sports lottery regulatory authorities should be balanced and cross-departmental, cross-domain and cross-border collaboration should be strengthened; a multi-party co-governance mechanism with the assistance of the sport autonomy should be built to create a good legal environment. The moral impetus and the moral education are adopted to cultivate people's values and moral selection ability through teaching them ethics, morals and competitive spirit.