After Sonic had freed the Gambler Sheep from having to work for him, Robotnik opted to open his new Casino Night Zone with rigged casino machines managed by Scratch and Grounder to make a workforce of gambles forced to build a monument of himself to pay off their debt. Having Smiley promote the establishment, the Gambler Sheep were quickly lured to the Casino Night Zone where they quickly lost their Mobiums. Sonic, wanting to put an end to this, tricked Scratch into giving him the keys to the basement. There, Sonic reprogrammed the machine that rigged the games in favor of the Gambler Sheep. When Scratch and Grounder found out Sonic's identity, Sonic took Tails to the casino nursery and lured Scratch and Grounder away. When Sonic returned to the Casino Night Zone though, Tails had been imprisoned by one of Robotnik's henchmen in the nursery, and was told by Smiley to lose a race against Grounder to ensure Tails' safety.
The Casino Night was later made one of the locations the racers in the "Mobius 5000" had to drive through. Due to traffic jams there, Sonic used a Star Post to access the Special Zone for a shortcut.