The event was held at Fox Park on Tuesday night.
Police say a juvenile attendee and a Wildwood police officer were on the cart when they left the enclosed course and struck four adults and one juvenile.
Three people have been treated and released. Two others remain hospitalized, but police have not provided further information on the injuries sustained in this incident.
The golf cart impairment simulation has been part of Wildwood's National Night Out event for the past 20 years, police said.
"National Night Out, is at its core, a night of building police and community partnership. We look forward to the event each year and many of our officers along with their families are in attendance. This tragic incident is disconcerting to the entire City of Wildwood Police Department, and we would like to offer our sincere thoughts and prayers to the injured individuals," read a statement released by police.
The incident remains under investigation.
Anyone with additional information is asked to call the Wildwood Police Department at 609-522-0222 or the Cape May County Prosecutor's Office at 609-465-1135.