Gambling using a loan money is a big NO. The thing about using loan money for gambling is when you lose, you lose twice. It just doubles your regret, doubles the guilt, and doubles the money you lost. In the worst case, you will be possibly get into debt and that is something that we want to avoid. When I'm engaging to gambling I always tell myself to only risk something what I can afford to lose, in this way I am always reminded to not exceed my preferred amount for gambling. So, only gamble using your free money, but if you do not have any, better not to engage at all.
I think it only matters on an outsider observers like me and you, but for the person that's gambling, I think it won't matter too much to them, I am pretty sure that they know what they're doing when they gambled that money. Plus in the case with this one, I don't think that they won't even mind losing that money. Good advice to risk only what you can afford to lose but I can give you an even better one, why not avoid all the risk altogether by not gambling that extra money at all, spend it on increasing your savings.