Saw a movie in the early 90's/ late 80's that had a scene where a boss made a client play an arcade game called hell on wheels and whatever happened in the game happened to the little arcade game car he was driving in and eventually killed him.

Maybe the Big Race ?

It's The Double 0 Kid (1992) (V) (http://www.imdb.com/title/tt0106758/)

Here's the scene you're talking about YouTube - The Double O Kid 3/11 (http://www.youtube.com/watch?v=S6iTh5XSQYs&feature=related)

Yep that's it all right. Thanks!