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London Racer II is another iteration in the prolific Racer series by Davilex. The races take place primarily in the streets of London and Edinburgh, with additional tracks in Las Vegas, New York and Chicago.

There are three single player modes available: Single Race, Tournament and Time Trial. In Single Race the player is free to choose any of the 6 characters available, any of the tracks and any of the unlocked cars. In Tournament mode, the player races in a series of tracks while collecting money prizes and unlocking new cars. In both modes, players race against other races while avoiding being catch by the police. The Time Trial mode, players race against the clock trying to beat the best time for each track.

Each car (driven by a different character) has different stats in acceleration, top speed, handling, breaking and strength. The cars can also be upgraded using money collected from winning races and collecting money tokens during races. The cars also take damage when hit and can break into total loss if the damage bar is full. Repair tokens can be collected during races and if a car finishes a race damaged it can be repaired before the next one using money. Nitro tokens can also be collected and bought, and the cars' colors can be changed.

There are also two split-screen two player modes: Duel and Cop vs. Driver. In the Duel mode, players race against each other in any given track. In Cop vs. Driver, one player is the cop and the other a regular racer, and the cop player must try to crash the driver within the time limit.

The game can be played from either first (hood camera) or third person (behind the car) perspective.