A family leisure business was brought to its knees when a mum-of-two became addicted to online gambling.

Stephanie Graysmark blew more than £170,000 in 18 months after being left in charge of the Central Beach Caravan Park in Grove Avenue, Leysdown, on the Isle of Sheppey.

The victim was the 73-year-old grandmother of Graysmark's husband who was later forced to sell the business to pay off the debts.

But because the 33-year-old is the sole carer for her children and her sick mother – Graysmark escaped going to prison.

Judge Philip St John-Stevens told her: "What you did has had a catastrophic effect on the company. You deserve to go to prison but your children don't deserve to lose their mother."

Instead, he suspended a two-year jail term for two years and ordered Graysmark, of Princesses Parade, Waterside, Crayford, to wear an electronic tag for six months.

It will mean she can't leave her home between 8pm and 6am and she will also have to do 180 hours of unpaid work for the community.

Prosecutor Stacey-Lee Holland told Maidstone Crown Court how the victim, Maureen Wharton, owned White Horse Leisure Centres Ltd in Leysdown.

Graysmark started a relationship with Mrs Wharton's grandson and began working as a receptionist at the caravan leisure complex in 2010.

"In 2014, Mrs Wharton was diagnosed with cancer and the defendant was then left to run the business, given control of the owners' business and private bank accounts."

'What you did has had a catastrophic effect on the company' - Judge Philip St John-Stevens

In 2017, she was notified by staff that the phones had been cut off for non-payment of bills and wages hadn't been paid.

Graysmark claimed it had been an error but a report into the finances revealed £176,089 had been stolen – and she also admitted paying a £1,000 Paypal bill from Mrs Wharton's personal account.

Ms Holland said the thieving relative paid back the £1,089 with a cheque which bounced – but later the company went into liquidation and has since been sold.

"This was a substantial breach of trust," she added.

Paul Douglass, defending, said Graysmark became addicted to slot machines because of the stress of running the complex by herself.

She claimed her husband's grandmother had been demanding and she left as the supervisor and ran the bar and swimming pool.

"She came to feel over-loaded with responsibility and the amount of work she had to do. She was working long hours."

He said Graysmark, who admitted two theft charges, began stealing a little, planning to repay it when she had a substantial win.

"She is disgusted with her behaviour but was helpless to change and became trapped by her addiction.

"She wasn't living the high life, going on holidays, buying jewellery or expensive cars and she now feels remorse."

The judge told her she had become a "slave to gambling" but had not set out to steal.

He said he was going to take an "exceptional course" and not jail her because of the effects it would have on her children.

An investigation has now been started by finance experts under the Proceeds of Crime Act to try to reclaim some of the missing money.

Mrs Wharton said of the sentence: "I'm just completely and utterly gobsmacked.

"It took 42 years to build up the company and she gambled all the money and the company is now in liquidation.

"If I can appeal, I'll definitely go ahead and do that.

"She was gambling my money away while I was having chemotherapy treatment.

"I'm just absolutely disgusted about what's happened.

"What hurt me most was I lost my company, staff lost their jobs and some staff lost their homes."

It was not the first time Mrs Wharton had been the victim of a fraud.

Between 2011 and 2012, Mrs Wharton was fleeced of more than £70,000 by Karen Knowles.

"It happened to me once before and justice was done with that person and they actually went to prison," she added.