In their TaC in paragraph 39 it is directly written about the prohibition of using VPN, the wording is of course somewhat confusing, but as I understand it, everything that the client has contributed and won after starting using VPN will be withdrawn from his deposit.
The wording of the paragraph is indeed confusing. It doesn't say that using VPNs is prohibited, per se, or that it may lead to the suspension of the account. As per my understanding, if a user is caught using a VPN or logging in from a different country, all the bets he has made since his IP changed will be voided and the money will be returned to him in case he logs in from the same country IP he created his account with. I may be wrong though.
I think you quoted the wrong paragraph (in the image you posted).
What a strange rule they have there but I think this will only be applicable to the winning bets or to the bets that have not started yet (mostly for sports betting) because if it's also possible for a losing bets then it will be abused by the greedy people.
Someone will just change his ip to trigger the policy and then go back on his original ip again for his money to be returned in full amounts. They will keep on doing this until they hit a win. They need to clear their terms so that it won't cause a confusion to others and also change the way their system works. This is for their own good so that people won't complain anymore and will only start on liking them.