What is the ruling on living in a house that was bought with lottery money, and is it obligatory to sell it and donate the prize money, knowing that there is no other place to live?

Lottery is gambling, and it is impermissible to deal with it or benefit from its forbidden money. This money must be spent on charitable causes for the poor and needy. Sincere repentance for this sin is obligatory. If you are poor and in need, and your children are likewise, there is no harm in benefiting from the prize to buy a house, as Al-Nawawi mentioned in Al-Majmu' concerning the permissibility for the possessor of ill-gotten wealth to give charity to himself and his children if he is poor. However, this does not absolve one of the sin of participating in the lottery. Rather, sincere repentance, regret, and a firm resolve not to return to it are obligatory.