Please make it clear that we need to deposit first before we can withdraw the faucet winnings since we may be accused of abusing your site. Though it is good that you have that rule to avoid abuse but some users are not reading the terms and condition and may withdraw the winnings from faucet and they maybe accused without knowing that it is not allowed. I think it is better just dont allow them to withdraw without depositing anything rather than confiscating winning from faucet.
It was the users fault and not the casino if they did not read what is written in the rules. The casino already did their part which is they put all the things that their customer needs to know to avoid the violations. If they don't confiscate the faucet win by the user, they will just deposit a small amount and they will repeat the process of abusing the faucet so it will be better to just confiscate the funds so that abusers will learn how to deposit and play, if they want to earn something.
If all they want is the faucet then casinos are not the place to be but there are a lot of faucets scattered around which they can use. Crypto faucets do still have their own rules and abusing it are still not allowed.