I see many people including me are not happy with the house edge of the hi-lo games, I wonder why wetsuit is not considering to reduce it a little bit or even better reduce it like usual dice game (1%). I think it will be a great movement for them and many of their user or new user will not so worry to play hi-lo games with their own deposit.
As already said, the 5% house edge pays for the faucet (dice sites have a Faucet only if your balance is empty), the lottery and the reward points as well (with a lot of RP you can get a iPhone, they don't have them free...).
Freebitco.in was a Faucet at first place, then added more features to attract new players.