Having worked in casinos and actually owning a real, unrestricted gambling machine (for laughs, tbh): that's bullshit. Gambling works because there is always, always some machine that is paying out money. This one machine is sufficient to get all other patrons to throw more and more money at them.

Sometimes all hell breaks loose and multiple or all machines pay out. The joke is that most gamblers won't cash out and go home - they will "reinvest" their entire win in hope to win more... and the really desperate ones throw even more "fresh" money at them.