There is no actual sex in the film, other than in some of the video games played.
Much of the footage of Custer's Revenge shown is of the infamous sex scenes, though the graphics are very basic (8-bit), so while it's obvious what's going on, it's not too explicit.
Footage of Punch-Out!! is shown where a boxer is dancing around naked, showing his animated genitals.
Ray flashes back to when his ex-girlfriend, Brenda, gave him oral sex while she was playing Super Mario Bros. 3, though the only thing seen is Brenda's head rising from below the screen.
Sally discusses a porno game called X-Man with Scott.
While looking for Custer's Revenge, Steve tries to describle the game by making reference and hand signals about the Indian's breasts in the game.
Carter says that, as punishment for scamming him, Richardson's will have his ***hole "leased out."
Scott mentions how Ray has been getting handjobs since he was 9.
Steve says his wife flashed Art as part of his purchase of a working R.O.B.
Ray suggests to Ray that he ask Sally for a copy of BattleZone so he can "inspect her tank."
Scott and Ray say that Art jerked off to Samus from Metroid until he found out she was a chick.
Dani says she has spectacular breasts.