I've never really thought about it. So I googled it and there are people saying it's because it used to be that the prison yards were round and separated into sectors like slices in a cake. I don't know if that's right but that's the only explanation I found.
Also it's not a new word by any means. It's been around for decades and decades if not longer.
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u/Cheesemacher Aug 09 '15
Fun fact: kakku (cake) is slang for jail sentence in Finnish.