That's how casino counter the martingale strategy. Most of the bankroll won't keep up if they experience 20x losing streak. You need to have a ridiculous amount of capital to keep up with a very small base bet if you experience that kind of losing streak. This is why I don't do martingale only strategy on a casino since I've lost so much money just by doing it. It's an effective strategy but the risk of it will certainly drain all your bank rolls. I suggest to just use different strategies when you are doing a gambling session or mix some strategies.
I disagree with your point. Casino's don't need to counter martingale strategy, nor it's effective. It's based on gambler's fallacy and human's inability to understand probability or big numbers.
People can say that they understand how probability works, but we are intuitively not grasping it.
It's just as effective as any other method. All based on luck and probability