How come "Parlor Games" called a parlor?

Answer 1

Yes, the above answer is correct.
The word 'parlor' comes from the French word 'parler' - to speak. So it's the room where you would take visitors to sit and chat and have afternoon tea in the old days. These days we would just call it the living room or the lounge room.

Answer 2

A parlor game usually refers to card games or billiards, both of which were traditionally played in a room called, guess what, a parlor. A parlor is "a room for the reception and entertainment of visitors to one's home; living room."