The process most of the time gives you hope that you'll be able to make things up just to keep doubling your bet, but the time that you already drunk with that hope eventually you'll experienced unexpected losing streaks that will suck every single penny inside your wallet, later you realized that you are already addicted and unable to manage to control your emotions.
This is a personal approach for every player because if someone can't control themselves they will lose a lot. But I think this does not really affect the profitability of a casino that much because the casino always keeps a pre calculated margin. In slots it is just a few percent, and the rest is paid out to the players so to get a big win you need a lot of luck. When it comes to betting it is basically the same, the casino takes its margin. Players bet on different teams so I believe it is thanks to this margin, that the casino covers itself, and avoids big risks. I think that is exactly why there is a common belief that it is impossible to beat the casino, and because of this so many new casinos keep appearing.