This term originated from Ultima Online, a massively-multiplayer online role playing game (MMORPG, like World of Warcraft, etc), the term "Candyland" was given to a region "Trammel" where the player could not be killed by another player. Typically it was intended in a derogatory manner by aggressive players ("Player Killers" aka PK's) but could also be used in a neutral or positive tone.
Guy 2: Holy crap bro, how was it?
Guy 1: Totally trippy!
Parker: Hey I heard you were going to play Candyland this weekend?!
Jenni: Yeah I was, but I am still a little sore form the last game!
2. I stuck my cock in her ass and got molasses swamp.
3. Last night i was with my GF and her and i went to Candy Land and i got all her sweets.