I remember it!
There were indeed 3 sections: red, blue, and yellow.
The wheel had 12 spaces, like "0 Tickets", "5 Tickets", "50 Tickets", "20 Tickets", "10 Tickets", but there were others like "Free Spin" (which, ironically, gave you a free spin; go figure) and "Buy A Vowel", which would fill in a letter of the puzzle (which was JACKPOT, being that the Jackpot space was just coming into vogue when this machine was released; probably about 1995 or 1996). The JACKPOT space revealed the entire puzzle and rewarded the lucky player with a jackpot of tickets, which started at 100 and went up 1 for each unsuccessful play.
The machine was one of those ones where you put a coin in and watch it slide down a skinny tube into the wheel, stopping it at whaveter space it entered.
I remember winning 350 tickets on this game when I was little.
I thought I was the only one who remembered it!