The premise of Comedy Night is a simple but endearing one: simulate an open-mic night in a video game, in which players may take part as audience members or performers.
This simulation is done rather well on the technical side. You can create a funny looking character that either looks like you or matches your style, and you can modulate the pitch of your voice up or down. While you can push keys to make hand gestures or facial expressions, you need to use your mic to actually tell jokes (unless you're merely miming).
The players who are audience members have an assortment of emotes, cheers, etc. they can use, as well as using their mics to heckle. The only objective as an audience member is to sit back and enjoy the show, and feel free to lend your opinion.
The problem with Comedy Night is that the user base is made up of a very specific demographic, namely a pubescent one that is obsessed with racial slurs, particularly the "N-word". Clever comedians will often get booed off the stage in favor of ones that simply repeat racial slurs over and over, with literally no set-up or routine. Now, there have been a few occasions in which I've seen a brilliant set of comedy, but you really have to hunt for it, and it's likely that the server's users will sabotage it.
There are other modes that include rap battles and karaoke, but the essence of Comedy Night is the standup, and that is mostly ruined by puerile racism. One could argue that this was not the intent of the developers, but was it not foreseen, and is there no mechanism that could prevent this or encourage more diverse performances? Maybe the real problem with Comedy Night is that there is really no point at all.