That can happen, and not only in gambling. I remember a story of a popular boxer who made a lot of money because he is good at what he does, and winning many fights. Years later, or when he is near retirement, he spends all his money on gambling, alcohol, and women. After he depleted all his money, he became poor again, living in the province and didn't even have a house of his own or any savings.
Anyway, you are right that a gambler can win millions and just switch to another addiction because he badly wants to spend his money on a luxury that he hadn't experienced before.
There was a time when I managed to win a decent amount of money in slots. Then I hit the daily jackpot and there was still money on the deposit. My happiness knew no bounds. What did I do? To please myself and stop gambling for a while, I went and bought household appliances for the family, bought a good mobile phone. Well, and a little more in small things. I am glad that I did not start playing again. I am sure that all this money would have been lost in a jiffy.
You did the right thing. I remember when I got my biggest multiplier of 13339x in a slot machine and got near 2000 dollars because I was playing with minimum bet. I did the same back at that time last year, bought a Playstation 5 and a new mobile phone and gave 500 dollars to my wife to spend for fun. I also kept playing the last 200 dollars in gambling in a vain try wanting to hit again something big which of course didn't happen at all. So when winning big it is a good advice to buy something you love or new home appliances if some of our main ones have become old enough like a new washing machine for example. If we keep playing even after winning big then there is only one way for us, south deep in the abyss of loss.