Both VMware and Parallels run Windows 98.
If your game that requires Windows 98 also needs DirectX 7 orso, you still have a problem.
Only Windows XP as guest OS supports DirectX (9) shaders.
I have something similar when playing one of my all time favourites: Need for Speed 4 (High Stakes).
This game runs best in Windows 98, but both the Virtualisation software I use can't use 3D grfx acceleration whilst running Win 98 as the guest OS.
So, after some fooling around and Googling a lot, I got it running on VMware on Windows XP as guest OS. No compatibility mode, but running natively.