From the Super Mario Wiki
In this game, Mario faces off against three opponents, one at a time. First, players choose one of three Roshambo Cards: rock, scissors, and paper. The cards they've selected will be shown face down. After that, the "Ro-Sham-Bo!" message will appear onscreen, starting with Mario on "Ro" and his opponent on "Sham". On "Bo!", the cards flip over. Just like in a standard game: rock beats scissors, scissors beats paper, and paper beats rock. If both cards have the same sign, it is a tie and the process repeats until there is a winner. Mario can win coins and a Battle Card if he defeats all of the opponents, but if he loses, then he'll have to play again by either getting a Mini Paint Star or paying a fee to sneak in.
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