Someone buys the game. Then if there are no digital protections against copying and running the game on a different computer, the buyer can post the game online for someone else to download for free.
If there are digital protections against copying, which usually there are, the buyer could modify the game to bypass the protections, then post the game online for others to download free.
Downloading a paid game from someone online is piracy, and it is against your internet service provider’s policy, meaning you can get blacklisted from receiving internet service if you do it repeatedly, and yes your ISP can detect when you’re downloading illegally shared media.
There are ways to get around this, so people still do pirate games and other media, but honestly just get a job and buy your favorite game. Or if you’re really low on cash, buy the game key from a game key reseller, usually at a big discount.
Most games are pirated by downloading them from the internet from websites that offer pirated copies of games. These websites either host the pirated game files on their own servers or provide links to other websites that host the files. People can then download the game files and use them to play the game without paying for it.
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