The legend is that the game was originally played by the Incas. The Incas believed magical sapos lived in Lake Titicaca, and the Inca would go there to throw gold into the lake in order to win their favor. This eventually morphed into a traveling version (no water necessary) like the one we know today. After the Spanish arrived, they realized that this game would make an awesome drinking game. Hey, with all the wine they started growing they certainly needed some bar games.
The game then spread its way around Europe, but of course remained popular in Peru also. Today you find them at bars and clubs all over the country. I obviously don´t go to enough bars, because I hadn´t seen it. Or perhaps I had seen it but just thought it was a frog shrine?
Anyway, I have become a big fan. I am even thinking of buying a frog statue and coins here, and then having someone build me a set when I get home. And you can all come to my Sapo parties.