Yes, and it's a shame, seeing all the cases that exist regarding the VPN problem, sometimes for people who want to be more anonymous, the problem is different from those who want to play from their country and cannot, in part I think the direction of gambling and casinos in general will be to ensure that players feel more comfortable and will have to find ways to have some kind of acceptance by those who are from prohibited countries, and those who want to be more anonymous, Looking at it from a more external point of view, each of these players have their own reasons for using them and that is respected, the issue of KYC also comes in, which complicates everything more.
That certain points are mostly the concern especially for gamblers who wanted to stay hidden, those who dn't want to reveal themselves and keep aiming for discreet participations, though in some points there are ways and VPN gives those kinds of people hope but like what you just said, there are cases that VPN once detected and the origin of the person is under prohibited places the account will be frozen and nothing a gambler can deal to recover.
Those are part of terms and condition which being void by a gambler who takes the risk and continues using VPN.
They will be forced to find other platform who can allow them to continue playing without any restrictions.