The Princess Royal bestowed the honour on Batley-born Dame Dianne in recognition of her successful 14-year period as chief executive of Camelot, which runs the lottery.
After the Windsor Castle investiture ceremony, she said: “I’m playing now because of course at Camelot we weren’t allowed to play - and I’ve actually had a £25 win, so I’m a winner.”
Speaking about being made a Dame Commander, she added: “It’s fantastic but, like anything, this award belongs to a whole team of people.
“Yes I’ve led the team, but without them we couldn’t have achieved what we’ve done and the lottery’s raised £33 billion for good causes which is just amazing.”
During her time at the helm, she won two licence competitions to keep hold of the business and secured a four-year extension to the current licence, which ends in 2023.
Record sales of £7 billion in 2012/13 compare with £5 billion in 2000/1, while her period in charge created more than 3,500 lottery millionaires, with £3.7 billion paid out in prize money last year - 50 per cent more than in 2000/1.
Dame Dianne joined Camelot in 1997 as its commercial operations director, before taking the top job three years later.
Before that she was a marketing executive for firms including ICI and Woolworths.
World Cup winner Rochelle Clark, a prop in the England women’s rugby union team and the nation’s most capped female player, was awarded an MBE.
Kate Richardson-Walsh, captain of England and Great Britain women’s hockey teams, was also awarded an MBE.