If it is an input it should work.
If you open the Sound Panel in Win and select Recording devices you should see the Toslink input.
In the “Listen” tab you could choose a output device.
JRiver allows you to play it using the audio engine of JRiver: http://thewelltemperedcomputer.com/SW/Players/JRiver/Loopback.htm
Maybe your media player offers a likewise option.
Looks like it won't work as it's an OUTPUT adapter.