This is "Sonic Canball" which...obviously involves balls and metal trash cans. You apparently compete with other people while at this game, for prizes. You can see the slightly raised (likely woodcuts) of Sonic, Tails and some stars for the background. This is likely a common carnival type game, just with a Sonic theme applied.

This game could be seen/played at Sega Joypolis in Japan. (note the sign) However, it is a bit oldschool, so it's unknown if this thing still exists there. Still, it is interesting to see.