I had an experience like that. The droplet was used as a seedbox for Linux ISO torrents (truth, not a cover) and after a couple of months they contacted me, saying they where seeing abnormal activity to and from the droplet and I should investigate and take action within a week, else they would turn the droplet off.
After I explained it to them they replied that using a droplet as a seedbox was not allowed, poinnted to the relevant part of their TOS and I agreed to shut it down.
What the OP is experiencing is a poor way of doing business for them.
Seems it only handles “archived” games. So they need to be archived in a single .zip/rar/gzip/tar file.
Would it be able to handle .ISO files?
Answer: Yes. Found it in their documentation.