Is it legal for a teacher to give you a packet while they play games?

Tell the principle.

If you're sure that she's playing games when she should be teaching, then say something. You can ask to speak to the principal, I guess. Or you can have your parents call.

It's legal- governments don't pass laws about how teachers should teach- but it's not good teaching. It's good to have you actively working, but she should be circulating to help you and see what's going on. If she's really playing games, tell the principal.