it would be much better to keep the exchanges threshold same but increase the reward. Currently you only get 0.001 BTC if you have achieved the minimum 100,000 Reward points.
Its a 1:1 ratio and I think its fair though. According to TheQuin's post, you get 1 RP for every 500 satoshi wagered so thats 0.2% rakeback which is pretty much industry standard. Giving higher reward for the RP would benefit the players more although some site usually give higher percentage depending on your wagered amount but there is no that sort of stuff in freebitco.in
Do not forget that you are also increasing your faucet income, which means it could drop after you claim a few times but you are going to get more free money that way as well the more you wager, also you are getting lottery tickets which means you may win nothing but you may win a lot as well, all for free, and if you are affiliate of someone that person gets something as well, and you do get reward points but you can use that to increase your income as well, either for faucet or increase your reward points as well, not like this is already enough, they are also giving you the golden tickets as well after certain threshold.
Basically when you gamble here, you are not getting just a bit of back, you are getting a lot of things back from many different places. Add Fun token on top of that and it is insane how much you could make from here. That is why the huge 5% house edge that is all 1% in most places are fine here, why? Because of all the things we get.