This Master´s thesis deals with the impact of legislative changes in the realm of lotteries on the funding of sports by municipalities. This issue is explored in the practical part and the town of Jindřichův Hradec was used as an example. The aim of the thesis is to characterize the system of the funding of sports. Also, the thesis compares and contrasts the legislative state of the Act No 202/1990 Coll. of lotteries and similar games before and after its amendment which came into force on 1st January 2012. Finally, the thesis describes and assesses the support of sport clubs and sport associations by the town of Jindřichův Hradec, including practical calculations of the effects the law amendment had on the local handball club and its financial resources. It was found out that, in comparison with similar-scale cities, the town of Jindřichův Hradec provided above-average financial resources into the field of sport. The comparison of subsidy rules revealed that the new subsidy program presents the improvement, especially with the following aspects. First, there is the introduction of the preferred sport clubs institution. Second, there is the cancellation of the initial division into categories. Third, there is the establishment of the independence of the grant committee members. After an initial hesitation, the town approached the division of the money gained from lotteries very transparently and it usually tied up the allocation of the revenues to a current subsidy system. As far as the local handball club is concerned, there was palpable a positive change between the periods before and after the amendment.