In Cuba the internet is not available to anyone, only a limited amount of people are granted internet connection by the government. If a Cuban citizen required internet for any reason, they would have to pay nearly a quarter of a month's salary for an hour online in government-run hotels and Internet centers.
How did gamer's circumnavigate the government's strict hold on who gets the internet in Cuba? Through creating a secret computer network with more than 9,000 computers, hidden Wi-Fi antennas and Ethernet cables strung over streets and rooftops across the entire city of Havana.
In order to obtain all the necessary elements to create the network, so-called (by the Associated Press) Cuban 'youths' pooled together funds. The 'youths' have used the internet for the usual suspects, social engagement and gaming. Their games of choice? World of Warcraft and Call of Duty. The network creator Rafael Antonio Broche Moreno commented on the state of the network and the government: "We don't mess with anybody. All we want to do is play games, share healthy ideas. We don't try to influence the government or what's happening in Cuba … We do the right thing and they let us keep at it."
So yes, the government does know about it and they let them keep the world wide web.
[Chron]