I guess I missed point 14.4.
Let me try to understand.
Say one opens an account, deposits 0.001BTC, loses that amount, then continues to play using the faucet and wins 0.003BTC.
Is the player allowed to withdraw the 0.003BTC or not?
No. The faucet balance was independent of the deposit. Hence the terms are violated because the house edge of the deposit was not any part of the faucet-based wagering. The same happens if you wager using the faucet, win x BTC and then deposit and withdraw. You 'had an edge'.