And we know that a gambler that chases his losses will end up with a bad result. Too many stories that have been told that each gambler that won't stop will have the same ending as the others that have ended with a failure and disappointment. I think every gambler is aware of that if they won't stop but, it just so happen that stopping is a hard thing to do when you're attached and invested to your activity and had dedicated a lot of time on it.
To be fair, I have seen some successful stories when a gambler goes after their losses in a so-called "revenge gambling" spree. They have claimed to recover their money and even getting some additional winnings.
Though, even those those are cases of success, eventually the revenge gambling will inevitably end up in what you have described: a long downfall into a spiral of disappointed and loss of money.
There's possibility that a very few gamblers will have their revenge gambling happen successfully. But this isn't for everyone, it happens rarely, and the typical result that we see is when most of them have that disappointment and you're right that aside from that, losing more money.
In the worst case scenario, those stories could encourage others to do the same, it is easy to leave greed to take over one's mind.
True to that and that's going to give them more idea that they should go for it. And have the basic mindset that, if that happens to the other gamblers and they have successfully recovered, what is it for them for not trying since they're already losing?