The Game Corner has been a staple of every Pokemon game up to Generation IV. Here you can buy coins, test your luck, and win fabulous prizes, including new Pokemon and TMs you won't get anywhere else.
The only game in the casino is a slot machine-style game. Insert however many coins you want (1, 2 or 3, which add more rows on the slots where you can win prizes) and try and line up the same picture. A triple 7 yields 300 coins, three BAR yield 100 coins, three Poliwag, Diglett, or Jigglypuff win 15 coins, and three cherries earn 8 coins.
The Basics
You'll need a Coin Case, to be found in the restauraunt from the guy with the glasses along the main strip of buildings below where the Rocket Game Corner is. At the main desk in Game Corner (in the top left corner) you can buy 50 coins for 1000P. Unlike more recent titles, there is no 500 coins for 10000P option: you're stuck mashing the A-button unless you decide to play a few games. Make sure you look around everywhere on the ground in the Game Corner: there are plenty of free coins other people have dropped, to be found as you would with any other hidden item. Your Itemfinder won't pick them up, though.
Slots and Games
The only game in the casino is a slot machine-style game. Insert however many coins you want (1, 2 or 3, which add more rows on the slots where you can win prizes) and try and line up the same picture. A triple 7 yields 300 coins, three BAR yield 100 coins, three Poliwag, Diglett, or Jigglypuff win 15 coins, and three cherries earn 8 coins. Go hog wild.
Prizes
TMs
TM23 Dragon Rage: 3300 Coins A decent move and the only Dragon-type one in the game. Will always deal 40HP damage to anything regardless of type, stats, or weakness. Can be learned by the Dragons and dragonesque Pokemon including Charizard and Aerodactyl. You can probably figure out better options for these Pokemon later in the game but if you have some money to blow after the fourth badge it can be helpful to have a set damage attack.
TM15 Hyper Beam: 5500 Coins A very powerful Normal-type move. 150 Base Power, but forces you to recharge after using if you don't faint the enemy. Attach it to a strong and fast Pokemon with great Attack power (like Gyarados) and go hog wild.
TM50 Substitute: 7700 Coins A support move which creates a miniature doll of your Pokemon using a bit of its health to absorb stat-drops, conditions, and damage until its threshold is reached and it breaks. Not as useful as in later generations but can still be used for a good strategy or two.
Pokemon#030 Nidorina/ #033 Nidorino: 1200 Coins If you didn't catch one of the Poison-type Nidorans earlier in the game you can get their evolved forms here. Both save you a bit of time training and are pretty good when you evolve them. If you forgot to get a Moon Stone, there's one in the Rocket Hideout in the basement or one at Cinnabar Island.
#035 Clefairy: 500 Coins (Red) 750 Coins (Blue) Again, this can make up for not getting one of these rare little buggers in Mt. Moon. It too evolves with a Moon Stone and learns a few good Special moves. Normal-type.
#063 Abra: 120 Coins (Blue) 180 Coins (Red) Makes catching this little Psychic-type a heck of a lot easier now that he can't escape with Teleport. Evolves into a Pokemon with one of the best Special stats in the game (albeit reaching his last form via trade).
#123 Scyther: 5500 Coins (Red) A formidable Bug/Flying-type Pokemon with great Speed and Attack. Only found in the Red Version and in the Safari Zone, he's much easier to get with slots than randomly tossing balls at him and hoping for the best.
#127 Pinsir: 2500 Coins (Blue) Another Bug-type Pokemon with a killer stat set version exclusive, this time Pokemon Blue. Again, only found in the Safari Zone for the rest of the game.
#139 Porygon: 6500 Coins (Blue) 9999 Coins (Red) Exclusive to the slots, Porygon is very expensive in both versions. If you're looking for a strong battler, it's not going to be Porygon, though it has a fun novelty to it you could try and make work with its strong movepool. Normal-type.
Pokemon Blue Best Slot Machine
#147 Dratini: 2800 Coins (Red) 4600 Coins (Blue) The only Dragon-type family in the game is found in its genesis only here and at the Safari Zone. Extremely rare and learns a myriad of great attacks, Dratini would make a smooth addition to any team.
The Game Corner has been a staple of every Pokemon game up to Generation IV. Here you can buy coins, test your luck, and win fabulous prizes, including new Pokemon and TMs you won't get anywhere else.
Pokemon Blue Slot Machine Prizes
The Basics
You'll need a Coin Case, to be found in the Goldenrod Underground. At the main desk in Game Corner (in the top left corner) you can buy 50 coins for 1000P or 500 for 10,000P.
Slots and Games
Gold and Silver have two games now. The first is the basic slots game from Red and Blue: insert however many coins you want (1, 2 or 3, which add more rows on the slots where you can win prizes) and try and line up the same picture.
Slots Prize Table:
Three 7's: 300 coins
Three Poké Balls: 50 coins
Three Staryu: 15 coins
Three Squirtle: 10 coins
Three Pikachu: 8 coins
Three cherries: 6 coins
Getting one or two 7's seems to affect the game a little; you might see other Pokemon pop up from time to time to tip the balance of the game if you manage to pull off a 7...
The second game is Card Flip. New to the franchise, Card Flip allows you to pick one or several cards, place a bet on the winning card, and try to win. The less cards you pick the higher the yielding prize.
Prizes (Goldenrod)
TMs
TM14 Blizzard: 5500 Coins
An frosty blast of Ice-type damage is what you'll get using Blizzard. It's useful against the eighth Gym Leader and the Champion though it has low accuracy so watch out. Blizzard has a modest chance of freezing the opponent.
TM25 Thunder: 5500 Coins
This peal of electrical power will shock the living daylights out of certain Pokemon on Chuck and Pryce's respective teams. To add to the fear factor, Thunder will never miss when it's raining. It also might paralyze the target.
TM38 Fire Blast: 5500 Coins
A decently accurate and extremely powerful Fire-type move, Fire Blast will be immensively helpful in your fights against Jasmine and Pryce. It has a good shot at burning the target.
Pokemon
#063 Abra: 200 Coins
Makes catching this little Psychic-type a heck of a lot easier now that he can't escape with Teleport. Evolves into a Pokemon with one of the best Special Attack stats in the game (albeit reaching his last form via trade). If you do use him, your fights against Morty and Chuck might become a lot easier.
#104 Cubone: 800 Coins.
A neat addition to your team can be the elusive Ground-type Cubone for just 800 coins. Its Defenses will be a good asset against Whitney, Morty, and Chuck, and its STAB attacks will be great for the fight against Morty and Pryce.
#202 Wobbuffet: 1500 Coins.
An interesting Psychic-type that plays differently than any other Pokemon in the game. Huge HP stat means it can take any hit then pay back for double with Counter and Mirror Coat.
Prizes (Celadon)
TMs
TM32 Double Team: 1500 Coins
Boosts evasion to make the foe's moves miss. This works great both ingame and competitively, though watch out: you may lose all your friends if you try it on them.
TM29 Psychic: 3500 Coins
The most powerful Psychic-type move in the game. It has raw strength behind it and is great for dealing with pesky Fighting-type and Poison-type Pokemon like Hitmontop and Gengar.
TM15 Hyper Beam: 7500 Coins
A very powerful Normal-type move. 150 Base Power, but forces you to recharge after using. Attach it to a fast Pokemon with great Attack power (like Entei) and go hog wild.
Pokemon
#025 Pikachu: 2222 Coins
The mascot of Pokemon can be yours for just 2222, or if you wait a bit and go catch one in Viridian Forest. There's not much to be said about this Pokemon - though unless you get Pichu from your second egg, this is the earliest you can get the Electric-type mouse.
#137 Porygon: 5555 Coins
Exclusive to the slots, Porygon is very expensive. If you're looking for a strong battler, it's not going to be Porygon, though it has a fun novelty to it you could try and make work with its neat movepool. Get the Upgrade though from Silph Co. and you can have some interesting battles using Porygon2.
#246 Larvitar: 8888 Coins
This is your only chance to get the plucky Rock/Ground-type before you can go to Mt. Silver. If you want to raise it to Level 55 before that you will have its mighty final stage Tyranitar, one of the few Dark-types, at your disposal for the match against Red.