Hell, they should either kill the faucet altogether and leave everything else intact, or they should significantly increase the minimum withdrawal amount to something like 1 mBTC. Can't have transaction fees eating away the reserves at each withdrawal.
I don't know about the rest of you guys, but I've always known that bots were exploiting the faucet, and if a sophisticated faucet exploit across hundreds of accounts followed by a normal withdrawal is what caused the massive drain in reserves, then Freebitcoin needs to up their security before I can trust them with money again.
It's a shame because I used to advertise for this casino back in the day.
If they kill the faucet, then their domain freebitco will lose meaning. I think they should close their website and stick with one of their casinos, with Club Riches or Dplay and do a 301 redirect. Another option to my mind will be to set wagering requirement on coins that were claimed by Faucet. Increased Bitcoin reward with 10x wagering requirement or something similar will help their business to get rid of bots and it will also help them to give away fewer free bitcoins. This way, the faucet business will be profitable or at least will not harm them.
Increasing wagering requirement is a good idea. Another thing that they can do is increase the complexity of solving captcha before claiming the free roll.
They should add captcha for ever roll and remove the feature of no captcha above certain balance.
Using sophisticated captcha from google or any other service will eliminate the bots for good.