Nevertheless, I find the rule to be a little vague and the punishment too harsh. Someone can simply make a honest mistake if they don't understand the rules well, but you still get to confiscate all funds. I understand you want to prevent faucet abuse, but I think a better measure would be a wagering requirement for all deposits.
This needs to be addressed immediately as there are players that will really try to use their faucet. Because some won't deposit first because of trust issues. Better be clear if they need deposit first before withdrawal of winnings from the faucets, and if the deposit needs at least 1x wagering requirement. If they are not clear about this, this may possibly give them a headache later on.
When talking about "faucet" there is no "abuse", nevertheless not in that interpretation, or understanding.
Abuses on faucets can be regarding multiple accounting or contournements to claim multiple times the allocation destined to each individual !
Some sites claim that they are providing faucet, and however if you manage to do money from it they restrict it to you telling that is made just as a recreative way to occupating for (regular players), to use just in example when waiting for a tx confirmation or when the fund are already in a bet ...
So it is just a move to trick people they really providing a "faucet", as a free way to give their site a good image.
PS: Despite that that will surely not coast very much if allowed, as it needs to made something like ×1000 .. in addition to the fact that it gives to the site activities that bump the stats !