This is an arm wrestling arcade machine. The idea is simple, and definitely existed in English fair grounds for a long time. Put your money in the slot, and then try to impress your friends (or potential girlfriend ) by beating the machine.
Unfortunately, this particular model had to be withdrawn, following three separate incidents where people had their arms BROKEN! The manufacturers response was basically ‘Ha! Pansies!’. Not the best approach to public relations, but there you go. Reminds me of an incident in the park across the road from here, a summer or two ago. A ride broke whilst some children were on it, with a few small injuries. The owner’s response? To eventually offer those who were on the ride free tickets for future visits!