You place a coin on the mini plastic turntable (made in Japan) where you would normally place a record. When you press the black button it then moves the arm the turntable and the record rotates. "I think" it then shoots the coin into one of the speakers.
I say "think" because I can't find any other articles about this toy bank. I originally found it on this GREAT Japanese site but since the page is translated by Google, it is a little hard to understand.