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Could be multiple reasons, here's some of them:
Nintendo never even heard of PokeRag before, I know I never did before you told me about it
PokeRag hosts the game on an offshore server, where they can pretty much ignore DMCA strikes, because those rules don't apply there
Nintendo doesn't see...
They can't, and it's because of one simple reason, which PokeMMO state on their website:
* You must have the legal right to use that rom. We will not supply you with the roms, or help you find them as they are copyrighted
They dodge DMCA strikes because they require the user to provide the rom...