In some more rural areas of the country we still deal with the "Satanic Panic" about D&D.
I live in the Dallas/Ft. Worth area, and I still encounter some residual effects of that.
Part of that is because of the prevalence of Southern Baptists- a very conservative Christian faith, to be sure. In the 1983, Longview Christian HS decided not to play my Catholic HS (Cistercian Preparatory) football team because
we were
Catholics. The headmaster was fielding calls from ABC, CBS, NBC, and the local press for weeks. The football coach got calls from his family on the East Coast. We had been playing them for years, and somehow they missed that Cistercian is a name only associated with Catholocism...so we removed them from the schedule of
all of our athletic teams because they were jerks.
That kind of attitude crosses over into anything dealing with paganism, and lets face it, any game that starts with an assumption of polytheism isn't going to look too good to them.
And to be perfectly clear, its not ALL Southern Baptists- there are some in my circle of gamer friends, after all. Its mostly those in their hierarchy and the zealots... And the same holds true of more conservative Catholics and other religious types, as well.