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If you have 100$, and you bet 1$ at a time, infinitely, you will lose.
More generally (simplified to assume you're always betting the same amount):
P(ruin after X bets) = (edit: I removed my formula because it was wrong..but I'm sure you could mathematically prove a formula)
You're saying that the player pays a dollar each time they decide to "double-or-nothing"? I was thinking they'd only be risking the dollar they bet to start the game.
That change in the ruleset would definitely tilt the odds in the house's favor.