Nice local multiplayer game!

I really like how you did the menu navigation, but I feel like the player might need to move quicker or have the menu items closer so it's not as slow. 

The game itself reminds me a lot of the little battle mode that Smash Bros 4 had and Monkey Ball 2 game modes. The arena getting smaller over time is a nice touch to keep the rounds from getting too stale.

The bombs could do with a better way to read how close they are to exploding. Maybe instead of a glow, they have a sprite that changes colour (I guess the light could do that too). As it is now it's hard to tell how long you have. If the fuses were a bit longer it might also add an element of strategy in using the bombs by hitting them around, Bomberman style.

Keep working on it, there's potential here!