District Judge David Taylor said "any honest person" would have reported the winnings within a short time of receiving them and said he was satisfied Caroline Banana's behaviour did "amount to a deliberate cover up".
He pointed out Banana had only admitted her guilt on the eve of her trial last week, giving her "minimum credit" for that guilty plea.
Mr Taylor, sitting at North Staffordshire Magistrates' Court, ordered Banana to carry out a 12 month unpaid work order, with supervision by the probation service.
More top news
Three people suspected of breaking in to a school in Birmingham have been arrested thanks to the help of a police dog.
A British-Iraqi man is the head of a people-smuggling network suspected of bringing hundreds of migrants to Britain, a court has heard.
Claims against the late politician were originally expected to be aired during inquiry proceedings starting in September.