It probably has more to do with the Panopticon as a prison, but the game might not necessarily have to do with prisons, it might refer to the more generalized concept of "Panopticism".
A Panopticon is a special kind of round prison, where the guards in a central guard tower are always able to see every prisoner, but the prisoners themselves are unable to see the guards in the center.

Unfortunately this image doesn't illustrate this principle very well, for it seems as if the guards in the center could be seen very well, but it's a crucial concept: People disciplinating themselves, as they know that they could theoretically be surveilled any given moment by a powerful entity, so since they don't know when they are actually being surveilled, they always have to assume that they are currently being surveilled and thus should behave accordingly all the time.
Religious disciplination by the way can be thought of as a very similar concept: The belief that an all-seeing god could see everything you do and punish you badly, eventually for all eternity, for violating a given set of "laws". You cannot see him; ultimately you don't even know if he's actually there, but the disciplinary effect works very well anyway.
A sketch of the Panopticon's inventor, showing the all-seeing eye in the center of the prison, even suggests that Bentham's idea may indeed have been inspired by this.

I don't know how exactly, but I think this could really provide the basic concept for a very interesting game - maybe a kind of social game?