The points are camshaft driven and mounted on the side of the engine block. Look around on the carburetor side of the engine. There should be an aluminum rectangle cover over them. Also it should have an automotive style coil. Trace the wire from the coil to the points.
I don't believe this would be a very good go kart engine. They are made of cast iron and very heavy. On the other hand, garden tractor pullers have been using them for years and there are quite a few aftermarket performance parts available for these engines. I've rebuilt a few and they are simple, durable engines, they just weigh a lot more then modern small engines.