I think the location is based on your billing location. So ya, one would have to jump through some hoops and potentially commit fraud in order to trick them into billing you for a different region.
EDIT
Nevermind, I could have sworn they used to say it was based on billing location, but maybe they updated it.
This page has lots more info about blackouts:
http://www.sportsnet.ca/sn-now-support/
Quote:
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Regional blackouts are determined based on your location at the time you are streaming the content, not based on your billing address. In addition, the use of a VPN, proxies, or other services meant to mask or change your location, may result in you not being able to stream content you normally would be eligible for.
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