Re-Volt 2 (2000).
Also known as RC Revenge.
Developed and published by Acclaim Entertainment.
Editor's note: now this is a confusing one. Apparently this game is mostly known for its alternative title "RC Revenge (Pro)". If you try to look any information of Re-Volt 2 via Google, you're not going to find out much. I had to look for videos of RC Revenge from other Youtube profiles and sure enough, the game looks pretty identical to what you're seeing here.
Video by: PS1DemoMuseum
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Re-Volt 2 was the original name for Re-Volt's sort-of sequel, RC Revenge. When Acclaim announced...