PC John Fleet, 28, took the winning slip , with a prize of £59.21, when he was called to investigate the death of a man, who was subsequently found to have died from natural causes.
After he found the body he spotted the slip that the dead man had made days before on a horse race.
He took the slip and cashed it but the next day the dead man's sister visited the bookies to place a bet.
The bookmaker told her it was "such a shame" about the death and revealed someone had called in to collect his winnings.
She immediately alerted police but Fleet then contacted her to try and persuade her to drop the compliant.
He was suspended and since resigned from Devon and Cornwall Constabulary.
Fleet pleaded guilty to theft by "stealing a betting slip to the value of £59.21 from the estate of Stephen Lawrence" between July 30 and August 02 this year.
He also admitted a charge of perverting the course of justice at Plymouth Magistrates Court.
Judge Francis Gilbert told him: "I warn you that you must expect immediately custody for these offences which were very serious."
At a previous hearing Fleet also admitted accessing the force computer after a friend asked him to obtain contact details for his ex-girlfriend Sally Pimm.
Fleet, of Torquay, Devon, who lives with his grandfather, was bailed to return for sentencing on December 5.
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