If the user go ahead to make use of VPN after knowing his or her country is restricted, then the user is clearly looking for trouble and whatever he or she sees, he/she takes.
And speaking of VPN, I do not think this casino will support the use of VPN, most casinos with long lists of restricted countries usually don't like VPN, because users from this restricted places are going to be using it to bypass their restriction.
It is very classic warning on important practice of reading ToS and understanding it well in order to have proper practice with your account, money and other activities from using VPN or not as well as gambling activities. It is not too hard to obey ToS or even basic things written in FAQs of a gambling site.
I agree with you if a user does ToS break intentionally or unintentionally, the company reacts the same way. They don't tolerate any user practice that is strongly and early emphasized as not allowed in ToS as well as severe consequences later.