Ruling on sponsoring Islamic activities for children with lottery money
Question

                Is it permissible for Muslims to benefit from lottery money to support Islamic activities for little children? This money is given to communities in need, to improve their lives. In the West this money is regarded as an official source of sponsoring, because all other sponsors offer less money in comparison to them (the lottery organisation). This money (if it is given) will be used to serve the interests of Muslim children, to provide sporting activities and social skills training in a safe environment.
Praise be to Allah.
    The lottery is a form of gambling which Allah, may He be 
    exalted, has forbidden and called an abomination of Shaytaan’s handiwork. 
    Allah, may He be exalted, says (interpretation of the meaning):

    “O you who believe! Intoxicants (all kinds of alcoholic 
    drinks), gambling, AlAnsab, and AlAzlam (arrows for seeking luck or 
    decision) are an abomination of Shaitan’s (Satan) handiwork. So avoid 
    (strictly all) that (abomination) in order that you may be successful.

    91. Shaitan (Satan) wants only to excite enmity and hatred 
    between you with intoxicants (alcoholic drinks) and gambling, and hinder you 
    from the remembrance of Allah and from As-Salat (the prayer). So, will you 
    not then abstain?”

    [al-Maa’idah 5:90-91]. 

    If what is meant is some Muslims or Islamic organisations 
    holding a lottery or raffle to benefit from the proceeds to support 
    children’s activities and so on, this is something that is haraam and is not 
    permissible.

     Shaykh Ibn Baaz (may Allah have mercy on him) was asked: 
    Some charitable organisations organise lotteries or raffles to fund their 
    activities in the fields of education, medical treatment and social 
    services. Is that permissible according to sharee‘ah? 

    He replied:

    Lotteries and raffles are a kind of gambling, which is haraam 
    according to the Qur’aan and Sunnah and scholarly consensus. Allah, may He 
    be exalted, says (interpretation of the meaning):

    “O you who believe! Intoxicants (all kinds of alcoholic 
    drinks), gambling, AlAnsab, and AlAzlam (arrows for seeking luck or 
    decision) are an abomination of Shaitan’s (Satan) handiwork. So avoid 
    (strictly all) that (abomination) in order that you may be successful.

    91. Shaitan (Satan) wants only to excite enmity and hatred 
    between you with intoxicants (alcoholic drinks) and gambling, and hinder you 
    from the remembrance of Allah and from As-Salat (the prayer). So, will you 
    not then abstain?”

    [al-Maa’idah 5:90-91]. 

    It is not permissible for any Muslim to engage in gambling 
    under any circumstances, whether the money that will be acquired through 
    gambling is to be spent on charitable causes or otherwise, because it is 
    evil and haraam, as is indicated by the general meaning of the evidence, and 
    because earnings acquired through gambling come under the heading of haraam 
    earnings which must be avoided. And Allah is the source of strength. End 
    quote from Fataawa ash-Shaykh Ibn Baaz, 19/58 

    If the Muslims do not do that; rather they are receiving 
    donations from the organisation that engages in gambling or riba, then there 
    is nothing wrong with accepting these donations, especially in the case of 
    need, because wealth that is haraam because of the way in which it was 
    acquired is only haraam for the one who acquires it. It is not haraam for 
    the one who takes it from him in a lawful manner, such as if it is given as 
    a gift. 

    See also the answer to question no.
    13503 

    And Allah knows best.