I believe it's addicting because people keep getting hope of winning the next round or the next one or the one after that.
So they'll just keep on playing without realising they've lost a bunch along those rounds.
Well said. In the heat of the moment people keep playing and playing, Not thinking about their loss.
They notice teir loss when there are no more chips/money
True, indeed. After that there's nothing left to lose and no chances to take after that.
Unless you got a big buffer behind you of course. After a big loss I wouldn't risk gambling for a while.