Instead of looking constantly through new pictures for lolicon and shota, why not just get new advertisers? It would make moderating the site easier to do.

I think it has something to do with money. Location may also play a role, not really sure how that works. I believe Paheal had a similar dilemma. Advertisers who allowed loli and shota, and whatever else is (illegally) involved, paid less.

We cannot find advertisers that pay a decent rate that don't require you to actively remove loli and shota, so it's not an option at this current time.

Also underaged hentai is illegal where the server is based, mostly 3D, but the law is rather vague and so we don't want it on our sites for legal and fiscal reasons which are not about to change any time soon.

And we barely break even so we don't have the money or in the inclination to move.

If you want loli go to lolibooru.com

actually the paheal problem had more to do with etology sucking massive donkey dong and their porn division not informing anyone a major advertiser dropped out until the last quarter of their tax cycle. You are perhaps conflating the actual HOSTING issue (Dreamhost) with the payment issue (which took place a full year later)