Still he is arranging funds from loan to play gambling,because he think that the recovery was possible at the place where he lost his money.What will be your suggestion for my friend to recover from the gambling addiction.
Since your friend is adamant to heed your advice and stop chasing his loses, what you can do is stop loaning him money, except you're very sure that it won't be used for gambling. He is still addicted to chasing his loses because he still has ways of raising his gambling funds, if he runs out of ideas and avenues to raise money for gambling, then it'll be a full stop to gambling. Your friend really needs help to overcome his addiction and it'll start with him admitting that he has a gambling problem. I guess that sooner or later when there's no more money to gamble, he'll admit that he needs help. Keep encouraging him to stop until he makes that decision.
That will not easy to reminds him that he will still difficult to recover his losses in gambling and he will only increase his losses and can't pay the loan. When someone takes a loan to playing gambling and lose all of that money, he will search for other people who will borrow their money to him. He will not learns from his mistake and will do that over and over a time.
I agree that his friend needs help to overcome his addiction. But his friend must realizes his condition that addicted to gambling so he will wants to go to the rehabilitation center to gets helps. As a friend, we can encouraging him to stops playing gambling, especially if he already gets many problems from gambling and needs to solve it immediately. He can't do that for more because that can ruins his life sooner or later so he must realizes what happens to him and trying to solve it before it's too late.