Edith Urwin, 64, cashed cheques belonging to employers William Hill and used the money to place bets at the shop in Farringdon, Sunderland, where she was in charge.

In just 16 days last December, Urwin took £10,400 belonging to the company and bet the lot.

Newcastle Crown Court heard that despite the huge stakes, Urwin walked away with just £800 in winnings.

Urwin, of Rodney Close, Ryhope, Sunderland, admitted theft.

The court heard how the mother-of-three was caught when a routine audit revealed £10,400-worth of company cheques were missing.

Urwin was confronted and immediately confessed her guilt.

Defence barrister Stephen Thornton told the court: "This was 16 days of complete and utter madness.

"She felt she could drag herself out of a hole. She tried to use gambling to get out of gambling detbts and spiralled downwards."

Mr Thornton said Urwin has sought help for her gambling and debt problems. She has never been in trouble before.

Judge Michael Cartlidge sentenced her to six months imprisonment suspended for two years with supervision for two years and unpaid work for 100 hours.

The judge told her: "Your betting was not succesful, you only made profit of some £800 out of all those bets you made using the £10,400.

"I suppose it is a lesson to anyone who thinks about gambling, it is probably not worth it.

"You were in a trusted position, you were the manageress."

Prosecutors have started proceedings under the Proceeds of Crime Act to see if Urwin has any realisable assets which may be seized.

She will be back in court on January 7 after investigations have taken place.