Is this a Sonic Electronic item?
Techincally...no. Sega never made this & had no real hand in it. But, what it IS, is a relic of the past that is at least interesting to have a look at and understand. In various hotels in the USA, you could find this "EZ GAMES" box thing around the TV somewhere. It's a type of converted Genesis system, made to be pay to play. To get game time on the machine you had to put a credit card into that slot there on the front.

You could then be charged by the time increment to play the games that are loaded inside. You can see them there on the right. Because that big circuit board thing has the 'slots' for multiple games at once, they could be selected via the buttons on the front. Naturally you can see Sonic 1 there in the back. The controller cords are also replaced with sturdier, white cords. The box itself would also likely be bolted down & the gray surface is a tough plastic.
But of course...look who we have here on the front in the form of a sticker, to convince people to play the box: An ugly & bad rendition of Sonic. They totally missed his lower face color, his eye outline is wrong, the belly dot is miscolored & his face printing is poorly off-set. The sticker itself is likely just a garbage bootleg...but the game inside is real. Isn't it odd how places used to act before portable systems, phones & tablets? Isn't it nice that everything is much better now?