And the simple question is - Should a gambler be afraid of losing money to gambling? Why not simply stay away from gambling then?
If a gambler is afraid of losing money, then he will have a mindset of trying to recover his losses, so he will keep on depositing and find a way to recover those losses. its a risky mindset, not accepting the fact you can lose money, which is why there is a proven saying that we should only play with money that we can afford to lose.
If you're not comfortable with losing, then don't play and just keep your money, but you will not feel the excitement of playing.
You have a point, loss aversion most times is as a result of fear of Losing but this is a mental trap you must avoid as a gambler. They are also gamblers who don't assume that possibility of losing when placing a bet, I wouldn't even call this fear but delusion. These category of gamblers place their bet and only envision the positive outcome only, they don't consider the fact that they can also end up losing their stake. They forget the reason why it's called gambling, if you are always going to be in profit then it isn't gambling, the developers would just call it a charity organization.