Someone "still in the game" is an idiom that means: despite having trouble competing they still have a chance to come back, get out of the troublesome situation, and maybe even win.
in this context, even though Villareal team was losing 1-2 after 70 minutes of the match, it was still possible to make it even, and score one other goal in the remaining 20 minutes.
but this chance of coming back have been drastically reduced, when the adversary team scored a 3rd goal at the minute 20, making the deficit 2 instead of one, and the way back longer/harder for Villareal