If you follow your math, such gambling losers don't really have that much money to bet on an ongoing basis. The ones who support the losing side on prediction markets are the ones who usually do fine, but sometimes are taken by surprise.

Problem gamblers routinely take out loans, mortgage major assets, max out credit cards, and steal from their employers to fund their habits.

Statcon 101: Gambling addicts take loans to gamble, those loans are sold to your pension fund. Who is the loser?