I have seen this term used in a completely different context, specifically with console games and "boosting".
People may use a rubber band on their controller to force analog sticks and/or other buttons (such as a trigger) to function. I believe it is mostly done by people who want to appear active in an online game mode that kicks players for being idle.
The method is used for padding stats (i.e. boosting). For example, in team-based game modes where everyone on a team gets XP (more for winning), a player may rubber band to get XP for doing nothing.
Rubber banding is also used for people attempting to earn achievements (Xbox) or trophies (Playstation). They may leave controllers in such a configuration for prolonged hours to meet requirements quicker than actively playing.
People may also use multiple consoles to fill lobbies for "dead" servers, namely any game mode that requires a specific number of people to start a game. Rubber banding means that these additional players do not get kicked for being idle whilst the player uses their main account to play (or most likely boost stats).