The phrase refers to a set of rules applied while watching episodes of the animated television program SpongeBob SquarePants, where designated actions, events, or character lines trigger consumption of an alcoholic beverage. As an example, a rule might stipulate that viewers take a drink whenever the character Mr. Krabs mentions money. This combines the viewing of a popular cartoon with an adult-oriented activity.
The appeal of these games lies in their ability to add an interactive element to a passive activity. It can increase engagement with the show, transforming what might be a solitary viewing experience into a social one. While the exact origins are difficult to trace, it is likely that the practice emerged organically from college campuses and informal gatherings, mirroring similar drinking games associated with other forms of media.