I did a little looking through ngrams, and most of the early stuff I
found was late 90s java security model being described as a sandbox,
"We note that the term “sandboxing” was originally coined by Wahbe in
his seminal work on software fault isolation"
1993
https://dl.acm.org/doi/epdf/10.1145/168619.168635 Wahbe
there was one 1979 reference but it was unclear if it referred to
computer gaming or tabletop gaming, in
According to Ankur Taly's 2013 thesis at
https://theory.stanford.edu/~ataly/Papers/thesis-Ankur.pdf page 18
"Perspectives on Academic Gaming & Simulation" and I couldn't find
anything but short snippets without context
but it had a whole section 'Simulation in the sandbox'.