This report combs the historical evolution of China’s welfare lottery public welfare fund supervision system，and takes 2019 as an example to analyze the distribution and use of public welfare funds at all levels，such as the central special fund，the Ministry of civil affairs and provincial departments. After summarizing the existing supervision system，distribution and use of public welfare funds in China，through the analysis of the operation mechanism of British and American regulators and Hong Kong Jockey Club in China，combined with the actual situation of welfare lottery public welfare funds in mainland China，this report puts forward that we should promote the legalization process of lottery management，optimize the fund use structure carry out on regular audit of lottery funds and management through foundation mode.