In the game, "Jews" were blindfolded and taken to a place off campus and had to return to "base" while chased by "Nazis," the Los Angeles Times reported Saturday.
A Facebook page announcing the game was "friended" by about 40 students, and seven of them took part in the game May 20 at La Quinta High School, the newspaper said.
School district officials investigated and have disciplined several students who organized and participated in the game.
No one was hurt playing the game, authorities said.
A superintendent for the school district said the game was originally called "Fugitive" but at some point became "Beat the Jew."
"The fact that this is a game is intolerable," Sherri Johnstone said.
The district is working with local rabbis who have offered to hold tolerance workshops at the school, Johnstone said.