Gate lost to a late goal at struggling Burscough following a game in which they had led twice.
The visitors took the lead just two minutes into the game as Gary Pett who beat his man to get into the box before avoiding a challenge.
He then played the ball across goal to find Mark Buchan, who had the simple task of tapping in.
Gate could have then doubled their lead in controversial circumstances.
The home keeper pulled down Pett and was fortunate to see only a yellow card before Pett dusted himself down and saw his free-kick bounce away off the inside of a post.
Ben Fletcher then had to be alive to deny the home side three times in six minutes.
The home side did equalise five minutes before half-time, Peter Henerty finally beating Fletcher.
Gate were, however, back in front on the stroke of half-time as Andrew Richards showed great composure in stroking the ball home for a 2-1 lead at half-time.
Dean Ing looked to extend Gate’s lead straight into the second when he made space for himself, only to see his shot roll into the keeper’s arms.
Ing could have been in again minutes later as Buchan looked for his run, only to see the ball cut out.
The home side then equalised in the 74th minute as defender Luke Gibson headed past Fletcher from a deep free-kick into the back post.
Burscough would then go on to win the game two minutes from time, when Gate failed to clear and Matthew Ward tapped home at the far post.
Gate remain 13th in the premier division and host second-bottom Darwen on Saturday.
Squires Gate: Fletcher, Colquhoun, Richards, Carroll, O’Mahoney, Gray, Hall, Ing, Moxon, Buchan, Pett. Subs: Moorhead, Charnley, Higham, Atack.
AFC Blackpool’s home clash with Literland REMYCA in the first division was postponed due to flooding.