They definitely have some internal problems, but I wouldn't say that the Freebitcoin site is experiencing a mass leaving of users because of this. Over the last month, the Freebitcoin site has had 7% less traffic but it doesn't seem critical as it still has multi-million traffic.
But you'd have to see how much of that traffic is from people like me, who just play the free game and that's it. The way things are going, I don't trust depositing anything or having bitcoin there because of the daily interest they give or anything. But every now and then I play the free game in case I get the $200.