Ok, so first we have to know, will you be racing under NAMBA, APBA or IMPBA rules. Basically, NAMBA and APBA are the same. And as Bzubee mention, IMPBA is not as strict. I am not familiar with the IMPBA rules. Not that I don't agree with them.
To answer your question, you CAN be competitive with the older engine. It's not all engine that wins races. Your boat and engine set up, prop, your driving skills and yes, luck can win for you. BTW, where are you located?