This article gives the current state of the law. The Judge's rulings regarding IP addresses are deeply flawed, as indicated by the Law Professor's comments, since there was no need under the existing CFAA legislation to consider whether changing IP adresses is relevant; it was simply enough to confirm that the defendant had persisted in accessing websites for which they had been served a "cease and desist" notice.
The comments also indicate that the CFAA is obviously in need of rewriting, a bill (Aaron's Law - after the activist who took his own life) being in process (as it has been for about two years!) to make appropriate changes and clarify the underlying intent of the CFAA, the EFF commenting that: "Without this change, the government could've prosecuted everyday Americans for violating low-level terms of service violations... In short, everyone would be a criminal, leaving it up to the government to decide when and where to bring down the hammer."
The situation described by the OP is of course very different from that where the owner of a website wishes to restrict access, and I am sure that an IP (that's Intellectual Property, not Internet Protocol!) lawyer would be wringing his hands with joy at the prospect of arguing whether LL could actually pass on their rights to sim owners, renters, or anonymous and unvalidated alts.
The big problem is that an IP address does not define an individual - and you can't prosecute without being able to prove identity unequivocally, although as with any service, as long as you are not actively discriminating against some minority that the politicians want to humor, an organisation such as LL can refuse to serve anyone.
Whether the courts might take a different view of banning the users of the El-Ber Islamic School in comparison with preventing access by the inhomogenous ranks of students of Columbia University's Law School is an interesting thought.
The globality aspect is also of interest; where denial of service relies on USA legislation which is not mirrored in other countries then refusal to respect the ToS is almost impossible to enforce.
It's a minefield.
I look forward to making my fortune from it.
IANALY