If I am getting my facts right, the story breaks down like this:
A group of inmates started playing D&D in prison and tried to get others to play. This was seen by one inmate as “recruitment” into a gang. An anonymous letter was sent to the prison officials regarding this “gang” activity and the prison officials confiscated the D&D material. As a result, one of the D&D “gang members” sued the prison system stating his First Amendment rights were being violated.
He sued and failed to win his case.
According to the court decision, and I quote, “We view these cases as persuasive evidence that for some individuals, games like D&D can impede rehabilitation, lead to escapist tendencies, or result in more dire consequences.”
Escapism? Sure. Impede rehabilitation? Doubtful. Dire consequence? Hmm… Not sure what those dire consequences could be when a hardened criminal is role playing as a Half-Elf druid, but I’m not a criminal psychologist, either.
Take a look at the document that summarizes the case in full. It makes for interesting reading, regardless of your personal political personal views on the correctional system.