Congratulations, you’ve invented the Martingale betting system and are well on your way to becoming an adept probability theorist
The short answer is that casinos account for this by changing the profit returns and the odds of making a profit at all so that catastrophic losses are much more likely
Besides the immediate threat of mass rioting and an armed resistance no matter who you’re flogging, public torture as entertainment is a very, very bad precedent to set, and only serves to build up a culture of antipathy. Imagine how the wider justice system would change once that’s normalized.