If the player is unable to complete the challenge, they won't receive the trophy of that stage. Afterwards, a 'challenge game' stage comes up, and are just like Missions from Mario Kart DS which they must complete to earn a special item exclusive to the character and finish the stage. When completing the fourth stage, the player is rewarded with an item. Once the player wins a race for the first time, they are rewarded with the next race in the stage. The goal of each race is to finish in first place within the time limit. Each race involves a six-kart dash to the finish (one player and five CPU players). Mario Highway is set on sunset instead of daytime, Bowser's Castle has blocks that block several parts of the track) and a challenge that is specific to each stage. Players race in 24 courses in six stages with each stage having four courses and a challenge the first two are forward, last two are similar but with changed gimmick and environment, (e.g.

Completing a certain cup unlocks a new item. Some drivers can obtain special items that other drivers cannot obtain, much like Mario Kart: Double Dash! The player can use only three per race, and each track has a different selection of items to use. Unlike other Mario Kart games, Mario Kart Arcade GP has 93 items, of which 72 are new. Either way, they have to pay the machine in order to race again. If the player places first, they will move on to the next course, and if they receive any lower rank, they must redo that same course. When that's over, the item descriptions show up, and the player attempts to learn how to use it. After that, a roulette of basic items comes up, and if the player stops the roulette, they receive the items in the rows whenever they get an Item Box. If the player picks a cup, they cannot play a locked course: they have to play the available courses in the cup to unlock the other reversed courses.

But if they pick 'Time Trial', they attempt to beat a race-time record in one of the 24 courses in this game with the Triple Mild Mushrooms. If the player picks 'Grand Prix', they can pick any cup to play within the time limit. When that is done, the player will pick a mode on the screen 'Grand Prix' or 'Time Trial' again within the time limit. The Photo taken will frame the player's face with Mario's Hat and Moustache. Then they have to take a picture of themselves within the time limit: if the player didn't take the picture a countdown starts to force them to take it. After that happens, the player can choose a character to play with. First, they can adjust their seat within the time limit by moving a lever near their feet and sliding to any position on the arcade machine. To play the game, the player has to insert a certain amount of money or tokens into the game or in some cases, swipe a special card such as a Timezone Powercard.

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