<...> I have even witnessed someone from my area who lost $500,000 in just a week of playing a game, and I didn't understand how such a person can handle such loss or is he still okay with it, it's just so unreasonable for me, if I were to be asked.
Ah, such a shame! I feel bad for the guy who lost $500k, but I don't have any sympathy for him since it was his own decision to ruin himself or lose such a big amount. He could start a pretty healthy business with that amount and live the rest of his life off of it, he could even gamble once in a while with the money earned through that, but he chose to gamble it away.
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Well. He had half a million dollars to begin with. Those who can afford to bet that amount do not tend to generate much sympathy.
The problem with gambling responsibly is that sometimes gamblers get into an emotional state that makes them skip all the plans that have been mentioned here: budget, maximum hours, whatever.
A good measure for those who have reached a state where they are not in control and have lost too much is self-exclusion, but the bad thing is that with the internet there are a thousand new places to gamble and in the end the only thing left to do is to seek help.