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It can be assumed from the title that the player's objective is to nuke Canada.
From what can be seen this appears to be a one player game. It takes both dollars and coins.
Nuke Canada is an arcade game where the player, presumably, nukes Canada. The game could be seen in the background at the Kwik-E-Mart when Homer had walked in toting a gun, as well as at a bowling alley, where Mr. Burns had taken Gloria for their second date.