I have never heard of this term, but there are govt "games" that are released in the wild that usually end up with a job in a 3 letter agency if you get far enough. Usually its puzzles. I havent visited one in awhile and I am not sure what the most current version is.
This particular one is a big urban legend. TLDR version is that there were a handful of cabinets that popped up in the Portland area and were being monitored by "men in black". Kids started going crazy and committing suicide after prolonged game play.