State of Emergency is set in a dystopian future where The Corporation controls everything. A resistance group called Freedom exists, disliking The Corporation's dictatorial rule and fighting for freedom.
The player can choose from five different characters: Spanky, an ex-gang member; McNeil, a disgruntled ex-cop; Bull, a criminal in prison; Libra, a lawyer; and Phreak, an orphan. The player must complete various missions, including rescue missions, "Kill This Person" missions, and "Blow Up This ..." missions.
The gameplay involves completing these missions while having access to a wide range of weapons, such as shotguns, machine guns, pistols, knives, rocket launchers, tear gas launchers, flame-throwers, gatling guns, pepper spray, molotov cocktails, and more. The player can also use street props like boxes, construction cones, benches, signposts, trashcans, and other items as weapons by breaking into stores. The game features various enemies, including gang members, skinheads, and The Corporation forces.