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I thought I read that allowing other Aussies to play there broke some law.
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This is correct.
Source:
http://www.dcita.gov.au/communicatio...mbling/summary
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It's actually illegal, as I understand it, for Aussies to play online at all. Most sites just ignore that. They might have it in their ToS, but they don't actually enforce it.
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Then you don't understand it, because this is not what the law says.
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You are splitting a very fine hair. Whether the person punished is you or the site, it's illegal for you to play there. In the same way, it's illegal for you to drink in a pub if you're 13. This is true whether the law says you are fined or the pub is fined.
I'm glad I could clear that English idiom up for you. If there's anything else you're struggling with, please let me know.