> people, paid employment simply doesn't look like a viable way to earn a living anymore, so they feel the need to play high-risk, high-reward games in the first place.

The odds are such that they loose. Gamblers end up with less money. These people are addicts solving their emotional problem at high financial cost and debt.

> suddenly betting on a game that pays double or nothing doesn't seem so irrational anymore.

It is as irrational as in any other situation. And odds are not double or nothing. That would simply made betting pointless