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.
You are right if a person is addicted to gambling then if money is lent to that person it is very difficult to get this money back later. Of course, if this person does not lend money to his friend, he may not be able to gamble, and he will gradually wean himself off the gambling addiction. If a gambling addict does not have money, he may gradually realize the trend of financial situation and he will not be attracted to gambling. But if the person can take a loan from someone then surely he will be attracted to gambling again and there is a possibility of becoming addicted. It would be best not to lend money if a friend of a person is addicted to gambling but to show him various ways to stop and get him back from the addiction.