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Self hosting kids-friendly multiplayer games on Raspberry Pi 4
(social.graves.cl)
A place to share alternatives to popular online services that can be self-hosted without giving up privacy or locking you into a service you don't control.
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Minetest with mods & SuperTuxKart
Minetest is an excellent candidate for this use case, I'd say. I play Minetest on a Raspberry Pi 4 connected to a Minetest server hosted on a different Raspberry Pi 4 (both running Arch Linux Arm) over Wifi regularly and don't find latency or lag or anything to be a significant issue.
The world I've been playing in that particular way is on the game VoxelLibre (Formerly Mineclone 2). It's intended to mirror Minecraft's functionality as closely as possible. It's not 100% implemented, but a lot of it is implemented, and it's very playable. The default Minetest Game is great too. It lacks mobs, but mobs can be added with mods like the various Mobs Redo API plugins. (And it's easy to have mobs but not enemy mobs that can kill the players if that's the vibe you're going for.)