This is a stupid game!!!!
You teach you dogs that it is ok, to bite cats.
One day, when they grown up, they maybe really kill cats and the first one could be yours.
Dont you like your cat?

Also you show to the little girl that it is ok, when the cat is afraid.
Would she still laugh, when the cat is swimming in blood, dead?
I do not think that this is funny!
And I think this is neither funny for the cat.

We also have dogs and cats, but we would never treat our animals in a bad way.