You are right, and even if the lender asks the gambler want he wants to use the money for, the person wouldn't say that he wants to gamble with the money. Rather, he would come up with a lie that will make you sympathize with him, so they you will give him the money. One thing why I don't like to borrow money to gamble is because, when you lose your bet, you will not have the zeal of paying back.
There may not be such a zeal to return the money, but the banks will force it. Collection agencies know their job very well. Their employees know how to knock money out of people who owe. That's what happened to me. They called me several times a day and threatened me with physical violence. Therefore, it is better not to get involved with such characters and return everything as soon as possible. In our country, such a practice is gaining momentum. Of course, such impudent collectors have been reined in a little, but the terror against debtors continues. There is no point in borrowing money. Especially for gambling. This ends rather sadly for many people.