Well I don't know how this question will look like but I have to ask, because I need people's ideas in this situation that am in right now.
So here is my question, If you have a family member or a friend with gambling problem, as in he or she is so addicted to gambling to an extend what he or she thinks about is nothing but gambling, if he or she ran into financial problems and come to you to loan he or her money. are you going to loan the person the money?
I rarely give loans unless I know for sure that the reason for borrowing is for urgent matters, so I will not give loans even to family members when I know they are addicted gamblers.
Lending money to gamblers is as risky as borrowing to gamble, there is a chance that we will not get the money back, so rather than losing it is better to say no and advise them to go to a professional to get treatment and recover from their addiction.
Don't feed his addiction, it will only make him sink deeper.
Based on the premise given by the OP I think the correct answer is what you said which is not give him any loan.
The person in subject is a problematic gambler that encounter financial problem due to gambling addiction. It’s obvious that lending him money will just fuel his addiction.
I believe the only thing I can offer when I’m on this situation if he is important to me is schedule him an appointment to an expert for a therapy session.