Hacky Sacks originated in the USA in the 70's as a ball game with one rule - keep the ball off the ground (keepy-uppy to you and me). The small leather beanbag was used instead of a football and soon became a worldwide phenomenon. It's still popular today according to the International Footbag Player's Association!
"Hacky Sack" is in fact a trademarked name from the inventors of the footbag, John Stalberger and Mike Marshall although it is now just a genericized trademark. Sadly Mike Marshall the co-inventor of the Hacky Sack died from a fatal heart attach back in 1975. After Marshall's death, John Stalberger sold the rights of the title off to Wham-O.