Most of those kinds of gambler who take loans to continue playing or betting are addicted gamblers who needs help to stop their addiction, just the same with what you said, those who are trying to chase their losses that resort to barrow money to try recovering mostly turned to another bad position, losing the amount that they barrow and look for another resources or try to find someone who can lend them money, it adds up with the problem that's been created from the previous loans that being done.
They can't get of themselves and there's no resource for them anymore and that's why they're borrowing money to gamble.
Not necessarily no resources anymore because these people will never get a loan if the loaning company does not see any capability of the person to pay. More or less the loanee have the capability to pay because there is a source of income attached to their application like their daily jobs. This gambler may just don't have patience to wait for his salary that is why he loaned money for gambling.
That's a common mistake we do see from the addicted gamblers and they will only realize it when they're already done or once they look at how much money they have borrowed to gamble. Very unwise move as we can see from them but that's what they think is a best move for them to keep on track with their gambling activities. Soon, it's not just all about borrowing but also with the potential of selling everything they own and the assets that they have if they will still be caught having no emotional control.
I agree, it is really unwise to gamble with the loan money. There are lots to lose here since when loaning, we need to pay for the interest and the amount we loaned. Then playing on gambling platform and losing them all simply means our next payday is already committed. This will bring us financial shortage and the start of headache for us.