Creepy FIL rubbed inner thigh, way too touchy feely! Am I overreacting?

Been married to husband for 9 years. I’ve always known his dad was weird.For starters he’s an alcoholic like BAD not like semi but like the drink a handle of vodka every 2 nights thing. His poor wife, my MIL who is an angel but has no backbone. Over the years FIL has continued to demonstrate this like super trashy low class behavior and I’ve always just tolerated it because I love my husband. Well recently it went way too far and I’m not sure if I’m overreacting but.. I feel super uncomfortable and can’t get past it. We went to their house one night and they had been heavily drinking. Super heavily and FIL almost dropped the baby twice. I tried to be cool, and not freak out.. he was burping farting talking about women being hot in short shorts in front of his wife but the kicker was when we sat down and I was trying to let them hold his grandson he reaches over and rubs my thigh, my inner thigh. At first I thought it was like aw that’s sweet but it continued.. and went on for like 10 minutes, I inched over and he’s like reaching further into my inner thigh basically almost touching me in my private ..aggressively rubbing and I’m like wide eyeing my husband like HELP!! And he’s ignoring my queues.. dear gawd.. finally I get up trying not to be obvious. My 4 year old daughter then is like love you grandpa! And the old man goes “want to take a nap with grandpa?” I’m like noooo she’s not doing that.. and he’s like yes she is. FIL is like, “That’s gonna be great let’s go to the bedroom and nap!” To my daughter and my MIL is like no that’s not happening to FIL.. and he argues! And we are just thinking like we have to get out of here! So we did.. We left. But like, I don’t ever want to go back! I’m so creeped out. I tell my husband how I feel.. he agrees and now we are just in this really weird awkward situation. They want us to come over for Easter, am I over reacting? I will never let my kids stay with them again. I feel like that was super weird! The drinking is another issue too. I don’t want my kids around it! I’m not cool with any of that behavior. It makes me sad because they love grandma and grandpa but.. moving forward I feel like it has to be supervised and no freaking drinking! Anyone relate? Any advice? Am I overreacting about this?