"The Jazz Hole" may be a reference to New York City jazz club "Birdland" which is in a basement, named for saxophonist Charlie Parker. It may also be a play on words; the archaic spelling for "jazz" is "jass" ("The Jass Hole").
The background noise of the arcade is the music from the Tetris arcade machine.
The controllers being used on Bart's video game system resemble Atari 2600 joysticks, but the graphics on the TV would suggest a newer model console. Also the game being played, Slugfest, is quite similar to the Nintendo game Mike Tyson's Punch-Out!!
There is a story that says that this episode code (7G06) was originally from another episode which (unknown if true or false) is called "Dead Bart", which is a famous copypasta also known as "creepypasta".