Indeed, the person you've been conversing with has presented an astute observation of human behavior in relation to gambling. Betting is analogous to a moth being drawn to a flame. Despite the inevitable harm, it is irresistibly lured by the prospect of light.
The psychological trap of "just one more bet" is a potent one. It's akin to the infamous paradox of Achilles and the tortoise. Despite all logical indicators suggesting otherwise, gamblers believe they can catch up with their losses.
The subsequent regret is a fundamental aspect of the human condition. We often fail to act in our best interests, leading to remorse, which unfortunately is short-lived. It's somewhat similar to the phenomenon of cognitive dissonance.
"Just one more bet" really works for many gamblers so they are willing to use their money more than before. They think that by raising the stake one last time, they are betting it all but the result is not going their way. And in the end, it is the casino that takes all the winnings.
That is a condition where the gambler has a choice: to stop or continue. But most gamblers will choose to continue playing. After all, they said this was one last bet and no regrets whatsoever. But it turned out that in one last bet, the reality spoke differently because they all lost. It makes many people regret why they didn't stop immediately but instead decided to make one last bet before going home.