It's likely this is a bit less for fun (Drunkhammer)
I see it more of a challengehammer, either your using it to spice up the game in a manner to make losses harsher and to prevent "suicidal" plays, using it in a manner like gambling but with money replaced by pure pain, or using it as a way to forcibly teach someone to stop losing.
Nothing says "Get Better" than drinking something that'll burn your mouth for the while if you lose.