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Just set a clear message which mode the players is in, and an option to switch them...sharing me two cents...
This isn't a common casino feature, and they won't achieve their goal of getting you to play for real money this way right away

. Typically, demo mode is only automatically switched to after the player loses their entire bankroll.
I don't know if Betkarma also offers a demo mode without a Karma balance; I don't see a reclaim button.
I know, it was only a mere suggestion..
As for your second question I didn't quite understand that. It says on their info page that everyday this Karma balance is topped up. No mention of any manual reclaim or anything.
Karma Coins is a free-to-play in-game currency. It is only available when you have absolutely no real funds (including available, locked, held, and bonus balances).
How it works
If you have any active real balance or bonuses, Karma mode is disabled. As soon as your real balance reaches zero, Karma mode becomes available again.
Daily top-up
Every day at 00:00 server time, your Karma balance is automatically topped up to 100,000 K if it falls below that amount. If you have 100,000 K or more, it remains unchanged.