I think hosting it is legal, but it becomes illegal if you start taking money for that, selling items on your server for real money etc..

(Doesn't include donations, so type something 'Donations are accepted to keep server running')
In response to Revenant Jesus
But what can Blizzard really do about it if you're hosting a nonprofit server? The Terms of Service is no legal contract that can put the user in jail for failing to abide by it. I think what happens is they stop letting the violator play on the Blizzard servers--which is useless anyway.
In response to Ripiz
Ripiz wrote:
I think hosting it is legal
No, it's illegal.

You don't actually own the game. You buy a license to play it. Every time they update the game it will pop up and you'll have to agree with whatever they change. By hosting a server you breach the contract, defaulting on your agreement.

Doesn't matter if your server is free or you charge for a subscription. It's all illegal.
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