I apologise if this is the wrong place to ask about this kind of thing, but recently I've been noticing that a certain Byond game I've been playing has servers devoted to hosting explicit images, which is prohibited in the TOS. This content is open to public viewing and is prefixed by a NSFW (Not Safe For Work) label, and matters of an explicit nature may be discussed within the game itself by using private chat (yes, -that- kind of thing goes on as well). As I see it, this constitutes a TOS violation, but I am unsure how exactly to react or if my view is correct or not. I would appreciate guidance in this matter for an appropriate source of authority.
Could you please outline where in the TOS this is not allowed?
Where did you read this?

BYOND just provides the tools, it's up to the creators of the game to do whatever they want.
Now, if it's geared to be a specifically explicit game (Hentai Hill, for instance) it may be removed or hidden from the hub, but they can still host it.
I apologize for this, the player here directed this to our administration team for the game. We had the content removed from the server as the host was not aware of the policy.

This player seems to be looking to cause more trouble and I am sorry the boards where troubled for this. The problem was handled as requested. Jeran just feels the terms were not harsh enough.
You can post all the explicit material you want in-game I suppose, via chat.
As long as the game doesn't have explicit sexual undertones, I believe it's allowed.
No it doesn't, it has the expression of letting people create the stories they want. Anything not allowed in content is not allowed on the byond hub and is dealt with.
In response to Flame Sage
The TOS warns that certain content may be removed from the hub:
User content uploaded to or displayed on the website can be filtered or removed at the discretion of the BYOND staff. Items that warrant such action include, but are not limited to:
  • pornographic, racist, or otherwise vulgar content;
  • ...

But as you noted, that's for the website. BYOND doesn't try to police game servers.

So long as the content is user-generated and doesn't spill onto the hub page or break any laws, I don't think BYOND would take any action. If BYOND did ultimately need to take action, they would probably be pretty reasonable about it and communicate with the hub author.

Although it's worth noting that neither of us speak for the staff.
The games can have anything they want in them, honestly.
It's just a matter of whether or not BYOND will support the game by allowing it hub access and whatnot.

So get to making them anime hentai games, fellas.
That begs the question, why was Falacy's Hentai game removed?
Because BYOND doesn't particularly have to grant continued hub access to a game, an in that particular case felt that what was essentially a game designed largely around the display of pornography probably was not appropriate for it's listings.