The items have a rock-paper-scissors effect, in which certain items can be used to defend against others.

Characters race through various race circuits themed on different Sega franchises and collect power-ups to boost their speed or hamper their opponents. Players can choose to race as one of 20 characters from various Sega franchises such as Sonic the Hedgehog, Crazy Taxi, and Fantasy Zone. The game is a mascot kart racing game, similar to other games in its genre like Mario Kart, Konami Krazy Racers and Crash Team Racing. An example of gameplay in Sonic & Sega All-Stars Racing