Anyone looking to avenge their losses is wasting their time, any money that we deposit at a casino needs to be considered lost from the moment it gets there, if you have this mentality then once that money disappears from your balance it will have no effect on your mentality and in your ability to gamble, however gamblers very rarely think like this and because of this they suffer some extreme emotions if their losses are too high, and since they cannot tolerate feeling this way they decide to chase their losses and lose even more money during their attempts to recover that money.
Correct, it's like when you're paying someone to ride a roller coaster, you use that money to entertain yourself.
But there are many people who not think gambling is something that will make them entertain regardless the outcome is, they think they will make money from it. But that's just a way for the casino to make someone get excited, when money is involved you will try your best to win the game unlike you gamble using faucet.