The gambling industry gathers next week for the Cheltenham festival, the biggest betting event of the year, wondering how long its resilience to the recession can last.

In spite of their share prices going into freefall in 2008, the big two bookmakers – Ladbrokes and William Hill – have shown in recent weeks that punters’ love of a flutter has so far defied the economic odds and predictions of empty betting shops. The shares have responded, performing relatively well during the past few months.