Is it permissible to use ill-gotten money (25,0 Tunisian Dinars) won in a competition to settle debts owed to the state?

If the amount is illicit (haram), it must be spent on the welfare of Muslims, such as aiding the poor and needy, building Islamic schools, and digging wells. It is not permissible to use it for paying taxes or anything else, because it is not lawful to own it.