This is a Sonic Pachinko machine.
Pachinko machines originated in Japan as a form of semi-gambling. It's more like an arcade type or carnival type though instead of tickets you get little steel balls. You buy balls, load them into the machine, and then use a lever or button to fire the balls into the top part. Depending how it lands, you can win more balls which can then be exchanged for prizes.
The upper part of a pachinko is much like a pinball table. It's loaded with lights, sounds, animated things and bumpers for your little ball. You lose all control of the ball once you fire it (usually in an arc from the edge of the circle, where it then falls in a creative way) This machine is complex, with chaos emeralds to light up on your way to prizes. The 'push' button is probably what launches
(that or the silver widget on the side) and the green bin should be where the balls go. There are little ring graphics and a Sonic head on the play surface, but in the center is a video screen. This screen shows video-game-like animations and numbers depending on how you're doing. The machine even has a little plot, just like a mini-game! The case itself is surprisingly orange, but over-all is rather slick looking, a bit like a 'flame' theme.
You can see an animated opener, attempt to read a story (its in Japanese) and not translate the manufacturer's site (the words are nearly all pictures, defying online translation) if you click this link: http://www.sammy.co.jp/product/pachinko/sonic/index.html