The franchise is one of the most effective means for the government to manage the lottery industry. This report reviews development history of China’s welfare lottery franchise system and the market structure characteristic of welfare lottery，summarizing Chinese tobacco monopoly system development course. This report compares and analyzes the lottery monopoly system and tobacco monopoly system from five dimensions：government considerations，legal basis，operation mechanism，marketization degree and international integration degree. Then it summarizes the enlightenment of the development of tobacco monopoly system in China to the welfare lottery monopoly system，including improving legislation and promoting the construction of monopoly legal system；unswervingly implement the monopoly system based on national conditions；construct a new mechanism of moderate competition on the basis of monopoly system；promote monopoly system reform and reduce administrative path dependence；change the discrimination between taxes and profits，government and enterprises，and form a unified national market；fulfill WTO commitments and introduce competition mechanism actively.