The problem here is that people forget to document what will happen if the money is lost in gambling and will the borrower share the loss too?
Trusting someone or financing someone to gamble on your behalf doesn't necessarily require documentation, especially in the gambling world where words are often honored. When you fund someone to gamble, it implies a level of trust, and any potential benefits are typically shared according to the agreement. In the event of a loss, the responsibility falls on the financier, while the person gambling bears no responsibility for the losses. That's how it typically works.
This kind of setup is usually on the financer's side, the risk is high but if the level of trust is covered then there are still financers who are more than
willing to take it and look for the best outcome to produce.
It's different from borrowed money though, I mean trusting a gambler and letting him lend money from you in hope that he can repay you if luck permits him.
something that risk is too high, and the outcome is more likely in losing your money without any way of repaying you back,