Grottos and Gremlins is a role-playing game that the Nerds play. It appears to be similar to Dungeons & Dragons, with some sort of added collectible card game aspect. In an early cutscene, some of the Nerds are seen playing it in the cafeteria, and later, Melvin's G&G Character Sheets are stolen by the Bullies. Two sets are also found in the Dragon's Wing Comics shop, one at a table to the left on the ground floor, and one nestled near the Beam Cola machine in the basement.
Apparently the game is so popular that it was necessary to ban it from the classrooms.
Grottos and Gremlins Cards are one of the various collectible items in the game. The cards are scattered all over Bullworth. They are hidden in Bully, but in Scholarship Edition, passing Geography 3 reveals their location on the map. Collecting them all earns Jimmy the Grotto Master Outfit.