The judge made 3 decisions. 2 very bad ones and 1 marginally good one.
1) The players cheated at baccarat, those winnings are forfeit. This is a judgement call, but yeah I agree this is cheating.
2) The players bet ill-gotten money on craps and won, those winnings are forfeit. Bullshit. Doesn't matter what they did with the winnings. Maybe they owe interest on it but not unrelated fair winnings.
3) The players get to keep items comped by the casino. Bad call. The casino "comp"ensates you for playing a game that they are favored in. They were cheating. The players broke their obligation.