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.
First, it needs to begin with the person itself, no one can help him if he or she's not willing to accept that he possess addiction, once he realize and admits that then aid will be more effective, just like what you mentioned allowing to go to rehab that's something that will give him a full stop into gambling, with his willingness to cure himself everything will follow, unless he choose to gamble again that will start the flame and give that green sign to start ruining his life again, it's a tough advise as it will pass in the ears without any work after the advise then nothing will change.
Well, prevention is better than cure, this is why I advice people to make sure they get acquainted with gambling before engaging in it, otherwise, something like this could happen and it could devastate them. However, it is not necessary for the gambling addict to cooperate before he is healed as you claimed, although it makes the healing faster if he does. Some cases are too severe for them to willingly cooperate, they just lack the willpower, but the expertise of those handling their case will get to them one way or another. There have been many cases of stubborn addicts who got healed eventually, I hope that says much of it. The gambling addict might have tried by himself, but if he doesn't have the willpower, he should consult a specialist in that field. If he did, then whether he has the power to say No or not, he must be healed one way or another, that's what they do.