Usually you can tell by the color of the smoke. Bluish smoke would be oil being burnt. Black smoke would be too rich mixture which means you cart engine carb is malfunctioning or the spark plug getting fouled.
Due to the age of that cart I would suspect it's oil smoke probably coming form the valve guide. Guides are usually the first to go on high miles or hours engines.
Usually if the rings or bore is worn it will shoot blue smoke on hard acceleration and deceleration. Also if the oil level is too high it will suck oil up into the breather system and end up in the carb. You should be able to see this by looking at the air filter see if there oil dripping. Unless the cart performance is dropping off Probably won't hurt anything as long as you keep the correct oil level and maybe clean the spark plug more often.
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