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Ouch

I don't know of an easy fix; but there are ways to repair this. You can use a thread insert such as helicoil or keensert, you can buy the tools to install them but it might be easier to take the engine or at least the lower unit to a machine shop. If you want to try fixing it yourself, you can tap out the hole with a pipe tap and use a brass plug. The problem with either of these methods is the possibility of filings getting into the lower housing and even when done the possibility of water entering the housing through the threaded areas. You can lessen the possibility of filings getting into the housing by blowing compressed air into the top hole, not too much or you might blow out some seals. You can also grease the tap so that the filings will stick to the grease. To stop the water entering through the outside threads of the insert you need to use a pemanent bolt locker.

Another method is to simply fill the hole with a metal epoxy filler and then drill and tap it to the required size, however it will never have the same strength as metal.
 
The easiest would be to lock tight it in place and then you have to suck the oil out instead of draining it. That would be the easiest fix but makes future oil changes a little less convenient. Just giving you another option. That seems to be the way some of the high end auto makers are going now..BMW's no oil pan drain...mechanics suck out the oil.
 
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