Legend, just get firefox and the add-on adblocker+... But yes, they are paying this site, because most users here are underaged and cannot donate if it became donation-based, instead of ad-based.
Other websites pay Armor Games for advertising on their website. A website that pays another website for advertising is called a sponsor. The company that hosts IM smilies is a sponsor of Armor Games.
You must be new to the whole concept of advertisements. The company who owns the product being advertised pays the website/television channel/ whatever for the space being used.
I'm otherwords, no ads here means no money which equals no AG.
...and how the heck do they distract you? Oh well.
*gets distracted by ad and accidently locks thread*