Thank you Tavia for pointing out the submission's page. That wording has been taken down and is in the process of being changed. But I want to address the way we handle ALL submissions.
Each manuscript submitted is read through fully and then discussed as far as Writing Quality, Author's Presence and Marketability. After careful consideration, we make a decision. Sometimes asking for a re-write/re-submit or a denial. Often with a denial, if the writing is still very good, we suggest other avenues such as other publishing companies with a proven marketing or story brand that is a better fit for that author/manuscript. We value each author and their work too much to take on a story that we feel we wouldn't be able to sell/market effectively based on our readership demographics (which we continue to analyze). Inkspell has a wonderful relationship with other publishing houses and have often suggested specific authors to them and they to us.
I have copies of emails in which we have said to authors, much like Oceansoul, that the story isn't a good fit for our readership for whatever reason and we suggest that they submit their story to publisher X, Y, or Z. Never once have we told an author that their story isn't a sweet romance because it contains male/male or female/female characters. This is the same way we handle historicals and more erotic manuscripts which we have found unable to meet sales goals on. It wouldn't be good business sense for us or to the author to publish a book which we can't effectively sell or market to our proven reader base.