There was a high school in Nebraska that did it some years back. After a couple of years or so of doing it, the state association finally put a stop to it by saying that the officials would TELL the game administration to kick everyone throwing the toilet paper out of the gym, as well as assess a T for the disruption. The association also gave officials the power to forfeit the game if game administration took too long to get it cleaned up, and the offending parties out of the gym. The school's administration decided it was easier to end the tradition than to have to kick 2/3 or so of the fans out of the gym.