True to some extent, James. Only the line that is cast and retrieved will be loose(r). If your lure puts enough drag on the line it should still spool up pretty tight. If not it's easy to occasionally let some out the back of the boat or down current and tighten it back up.
The trick is getting the whole thing tight, from the arbor up, then if things get funky it can only dig in so far..........
/m