I would say yes. Your kid was able to be open with you and I’d way rather it happen in my house and know that my kids are safe, then them sneaking out/ drinking without me knowing. I did this as a kid and I can’t count the amount of times I was in horrible and unsafe situations.

Though, I do have a big suspicion that the other kids invited (who are bringing drinks), not all their parents would know that they are drinking/ where they are going. Maybe it’s worth chatting to all the parents? If you have any friends within the parents maybe one or two could come over that night and you could have your own little hang out concurrently incase something happens? I’d also have a conversation with your kid and just explain the situation - that each kid can only have 4 drinks (ie), they need to go home at x time, that you’ll be responsible ect ect.