Brian and Wendy Rushin had lived "blameless lives" until they won the money in 2002 and became "misers".
They were so protective of their wealth that they saved it in an array of accounts and used it only once, to buy a new fridge.
Mr. Rushin, 74, and his wife, 72, also continued to claim housing and council tax benefits, taking thousands of pounds they were no longer entitled to over three years.
The pair were facing prison after admitting a string of fraud charges at Leicester Magistrates' Court.
But district judge John Stobart spared them jail after saying their "mean and nasty offense" highlighted the behavior the Lottery brought out in some winners.
"It turned you both into misers. You got a lot of money and kept that money, then kept dipping into the benefit pot," he said.
"This illustrates the meanest of spirits which will emerge in people who have lived otherwise blameless lives and have a sudden Lottery win."
The court heard how the Rushins hid their new-found wealth in several accounts immediately after winning it seven years ago.
They were finally caught when council officials checked their benefits claims and found money belonging to them in a range of undisclosed accounts.
Chris Wall, defending, said the couple had always "lived on the breadline" and did not think £72,000 pounds was enough to buy their council home.
"They did not have an affluent lifestyle, buy expensive cars or go on luxury holidays. The only thing they bought was a new refrigerator."
The court heard Mr. Rushin had started his working life on a wage of just £5 a week and had no experience of coping with such big sums.
A local council official actually helped the pensioner and his wife, of Wigston, Leics, to fill in their benefits forms after the win, claimed Mr. Wall.
He told the court: "The first application form was filled out by someone from the council. They had never any intention to scam the benefit system."
The Rushins admitted fraudulently receiving a total of £5,358.27 from Oadby and Wigston Borough Council between May 2005 to November 2008.
Mrs Rushin also pleaded guilty to a charge of dishonestly producing a document by failing to declare savings when filling in a claims form.
Judge Stobart fined each of them £2,000 for falsely claiming housing benefit and £2,000 for falsely claiming housing benefit.
Mrs Rushin was fined another £3,000 for the false document.
The court heard the couple, who have lived in the same modest council house since 1967, have since paid back every penny they falsely claimed.
Mr. Wall told the hearing: "Their overpayment — £5,358.27 between the two of them — is not a massive amount, and it has all been repaid."
Kalv Garcha, solicitor for the council, said he was "extremely pleased" with the outcome of the case.
"This shows we will not tolerate any kind of benefit fraud, no matter how big or small or whatever the circumstances," he added.