That statement is a fallacy they use it to encourage their fellow gamblers not to quit and to raise their hope in a hopeless situation, where is the hope for a gambler who incurred series of losses up to getting liquidated? Absolutely none the best bet is to completely quit gambling and start new a life rather than continue with lt.
Those who just continue to gamble without realizing that they have lost will lose more money because stopping would be better for them. Playing gambling is different from other things where if you lose, you lose. However, if you try to play gambling again, you will only experience even more losses, even though you may get a win, but the amount of your previous losses is already greater than the number of your wins. So they should be able to stop before the money runs out. Otherwise, they would only suffer more loss.
Exactly, people need to realize that gambling isn't something where this rule of when you quit then you lose applies, it can be applied to anything else in life where hard work is the main reason for success, but in gambling, the result is totally dependent on luck and hard work has nothing to do with it, I know that some parts of gambling such as sports betting require some work from you like analyzing the teams and doing some research, but that doesn't mean you shouldn't stop when you are constantly losing.
In gambling, the wisest person is who stops gambling when they realize they are not winning at all, because if they keep gambling, they wouldn't get any luckier only because of that, and they will just keep wasting all their money until they run out of money and then they realize that they should have stopped earlier.