i've never heard of that rule - mind you i'm not sure its something that could be reasonably enforced if one had the money and the legal inclination.
i watched a guy at the casino once in my younger days when i used to play roulette.
he'd wait for the same color to come up say 5 or 6 times, then he'd start betting, he had a fair bit of money and would just double up every time, never took any more than about 4 spins for him to win, i only ever remember him taking a loss and walking away from the table once (i reckon he probably went to another roulette table with a better chance) - he looked like a university maths teacher
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