If a player is from a restricted region, they should not sign up even though they can bypass the restrictions by using a VPN. The reason casinos are VPN friendly because, they want to allow users to bypass possible ISP restrictions. Also, sometimes a VPN boosts your internet speed. Sometimes, VPN helps you bypass some game restrictions as well. I am not sure if this works in Spinly.
If the website does not show any warning and automatically restrict access of people who are from restricted locations, users can use this reason on their VPN use without knowing of this restriction as well as possible consequence of using VPN for bypassing restrictions.
Oppositely, if the site already warns about it, emphasizes that it is not tolerated for any violation on ToS, but the user still try to break ToS, it will not be acceptable reason.