Fascinating article from Jon Peterson goes over the history of government intervention in gaming, and how it relates to the internet we have today. Includes this on the Dungeons & Dragons scare of the 80s:
This misunderstanding arose only five months after TSR obtained widespread notoriety in a similar confusion surrounding the disappearance of college student James Dallas Egbert III in East Lansing, Michigan. A private detective hired to find Egbert had learned that the young man played TSR’s role-playing game Dungeons & Dragons–at the time virtually unknown to mainstream America–and hypothesized that Egbert had come to believe the game was real. Famously, this led to calls for a search of the college steam tunnels, where presumably Egbert would be found wandering in a deluded stupor, questing for monsters and treasure.
Actually, Egbert had run away to Louisiana for unrelated reasons, but a seed was then planted in the American popular imagination. Role-playing games were dangerous: they warped fragile young minds, breaking down the barriers between the real and the imaginary. The irony is that it was the authorities, not the players, who couldn’t tell a game from reality.