Setting a budget is very important because if you can do this you'd avoid the temptation of chasing your losses. A lot of gamblers Chase their losses because they don't set out their budget so they end up making multiple deposits when they are losing just to get back what they have lost. These set of rules are very important and if anyone that's starting their gambling journey takes them seriously they wouldn't deal with a lot of losses
Besides avoiding gamblers to recover their losses in a careless way, limiting the budget will avoid gamblers to gambler excessively because of being greedy. There are gamblers who win 2-3 times, then they think they are very skillful and try to gamble with bigger money. They assume they will be lucky again in the next attempts, but unfortunately they never win again. This is something to be avoid, we shouldn't try to force gambling with an excessive + careless way. Every time we gamble, we must stick with our plan and our limitation, including limitation of the budget. Without the limitation, we probably gamble a whole day until all the money is over.
This is also about knowing your financial status. Because if you've got a $10 limit and that seems a lot for you, you shouldn't be gambling with. It's only an example but in real matters, $10 is already a lot in some nations and to a person who can't keep up with this amount shouldn't spend his money for gambling. We have to understand how our status is financially. Because we can determine ourselves if we're able to gamble or not. So, big or small limits as long as this is not going to affect our finances, you're good to gamble but still do it in moderation.
$10 can be a small money or big money, it surely depends on the financial level of each individual. The point is to set a budget with a small percentage of our income, or it should the money that we can afford to lose. Gambling shouldn't bother our financial stability, the main purpose is for entertainment (fun) or it is for trying our luck only. We never try to gamble with the amount of money that can bring a bad impact on our financial stability.