I see that VPN and using proxies are not allowed. I assume Papabet has a strong proxy and VPN detection system. If someone changes their location using these services, I assume Papabet would limit their betting ability and return their deposit (I am not sure, just assuming).
I didn't find anything related to limiting the users ability to bet nor nor anything to do with returning the deposit. Account termination is the only thing that makes sense, because obviously he is acting from a prohibited country. He shouldn't be betting in the first place!
Btw, one thing I don't like about them is when accessed the site from a restricted country it doesn't give you any kind of warnings. Used a VPN, changed the location to a restricted country, still no warnings. So I hope, in the future, they would add a message to warn users if something like that were to detect.