Checkered Flag for the Lynx is a racing game employing open-wheel racing cars (either Formula 1 or Indy-style depending on whether the box or the instructions are believed). The game features 18 tracks located in the American countryside or cities. Game modes include Practice, Single Heat and a 8-race Tournament. The start position can be set randomly or determined in a qualifying lap and the length of a race can be set between 1 and 50 laps. Also customizable are color of the car and the gender of the driver, both having only cosmetic effect.

Gameplay is Pole Position style, with the own car seen from behind, a perspective view of the track, and cars and roadside obstacles displayed as sprites. A graphical representation of the track, lap times, speed meter and rear view mirrors are always in display. One button accelerates, another brakes. Left and right on the joypad steers while up and down shifts gears if manual transmission (either 4 or 7 gears) has been selected beforehand. Crashing into other cars sends the own car into a spin while hitting roadside obstacles (trees, bushes, rocks or animals) reduces speed to zero.

The game can be played by up to six players via a ComLynx connection. If fewer players race, remaining slots can be filled by AI-controlled drivers for a maximum of 10 cars per race.