[Black Squirrel]

Roulette maybe? Or something entirely different with Sonic stickers? I can't tell - can you?

I think there are capsules in the top part which can be won.

These types of Japanese arcade games from the 80s and early 90s aren't well documented. Most are no longer in service and Sega doesn't keep public records.

[Lanzer]

So who took the pic? maybe we can track them down and ask questions about this machine.

[Kiddo Cabbusses]

It might be worth noting that the machine to it's left also has a Sonic sticker which implies being a Sega-made machine.

[superevil]

Found the source of the picture: http://onsen.ou-net.com/?p=1214

It's a blog about hotsprings in Nagoya.

The author of similarly guesses that it's a Sonic roulette machine, then goes on about the Game Gear's color display being impressive at the time.

Just a quick description of the machine based on what's actually readable at that really low resolution: The top holds special prizes if you land on a winning space, and to the lower left, there are small prizes that you can win even if you don't land on a winning space. They look like gumballs kind of. The readable text to the left of the green button says How to play （あそびかた）Nothing else is really standing out, as far as I can tell there isn't an immediately obvious title to it.