ToC is not the law.
But that's the written contract referred by the flag that points to this thread. If Sportsbet broke the law then the OP can sue them but as far as trust system is concerned we shouldn't be saying that a written contract has been violated when we disagree with the terms of the contract. Lots of deals conducted on this forum may be not 100% lawful in all jurisdictions (shark loaning for example) but we have come to a consensus, or so I thought, that we still treat them as contracts for the purposes of the flag system.
This is one of those similarities with the livecoin's thread that I was talking about earlier.
IIRC Livecoin flag is type 2 (implied contract).
Is there a point in the contract where Sportsbet can disable an account and seize the winnings without providing any proof?
You have a Sportsbet account, I don't. Enlighten us.