If we are talking about gambling, expenses must exceed income most of the time, and things will still be very normal, but then, there is actually a level that a gamblers loses can get to, it becomes a red flag, which is why it's important for gambler to always recognize the size of their pocket as well as their bankroll, and always set a stop loss for themself, just incase of bad days when luck seem to be saying no to them.
One thing about gambling is that, winning can never be forced, and so is losing, so, for the person who is experiencing a rather long and abnormal losing streak, it's better to stop than continue playing and end up feeling to bad due to the outcome of the game, winning in gambling was never meant to be a do or die affair.
I do agree with the rest of your text but i bolded a part i don't get at all, because it seems to contradict rest of the message.
If our gambling expenses would exceed our income, we would be playing more then we make money, and i can't agree that being normal in any way. Unless you have a fortune already, you are wagering more than you can afford.
I can't think of any other situation where i could spend more than my salary, than playing with my loan money.