The composite output on the Raspberry Pi was moved for the Pi2 and the Pi3, it's still there but no longer has its own port. It's now built into the audio jack, you need a special cable, something like this to use it.
lr-mame2003 in Retropie will play anything you want to play at full speed on a Pi3. Most of it will run on full MAME 0.176 if you want to go to the effort of setting it up over downloading a ready built distro.
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