I wouldn’t think that most WiFi setups in and of themselves would lead to much, if any, added latency. Wiring up your systems is always ideal in terms of reliability, but plenty of people (I’d bet most) game online via WiFi. I’d suspect that if you’re dealing with latency issues it’d be from playing on distant servers or some other bottleneck in your network.

One couple I regularly game with are on Starlink and I believe both their computers are on WiFi and lag is (generally) fine for them when playing action-survival games like 7 Days to Die, Ark, and Valheim. Their only issues are generally from when Starlink has a momentary hiccup.