The co-operative kicking sport has ancient origins from China, Thailand, Native America and nearly every country. Hacky Sack or Footbag, as we know it today, is a modern American sport invented in 1972, by John Stalberger and Mike Marshall of Oregon City, Oregon. Marshall had created a hand-made bean bag, that he was kicking around. Stalberger was recovering from knee surgery and was looking for a fun way to exercise his knees. Together, they called the new game "Hackin' the Sack." The two decided to collaborate and market their new game under the trademark of "Hacky Sack®".

Mike Marshall died of a heart attack in 1975, at the age of twenty-eight. Stalberger continued with the "Hacky Sack" cause and formed the National Hacky Sack Association. He later sold the rights for the Hacky Sack® Footbag to Kransco (operating under the Wham-O label), which also manufactured the Frisbee flying disc.

Following the invention of Hacky Sack (aka Footbag), different varieties of the sport have evolved including "Footbag Net" where players volley a Hacky Sack over a 5-foot-high net and "Freestyle Footbag" where players stand in a circle and do tricks with the Hacky Sack while passing it around the circle.