Abstract: Internet lottery is a combination of traditional lottery and internet products, and it is a new type of lottery business model, rather than limited to sales model The legal regulation is the fundamental way to change the situation For ending the ″jungle rules″ of internet lottery and grasping the uncertainty of disorderly competition, it is necessary to summarize the natural and actual characteristics of internet lottery The problems of interest distribution, administrative supervision and criminal crime revealed in the trial of internet lottery system are analyzed, and what the internet lottery should be and used to be are summarized and compared  Final conclusion is that regulatory measures should be taken, such as improving the industry management system, completely withdrawing the regulators from the interest game of internet lottery, legislating monopolistic business model, balancing the rights of parties with legislation, and paying attention to relevant technical programs

Key words: internet lottery, the natural and actual characteristics of Internet lottery, operating mechanism, legal regulation