Every three weeks, the Hopscotch Bar in Braddon hosts the Sydney transvestite-led bingo shows, in which a bingo game is interwoven with a performance.

But the bar has run into trouble with the ACT Gambling and Racing Commission, which advises that if it involves an entry fee and prizes, it falls under gambling laws. That would mean Hopscotch having to apply for a licence for each show, have specific signs, train staff on the responsible service of gambling, have exclusion procedures, nominate a contact officer and put in place harm minimisation measures.

Hopscotch owner Nick Parkinson decided he would have to jump through the gambling hoops this week, but on Thursday put his application for a licence on hold after the intervention of Mr Barr.

On Thursday, Mr Barr tweeted, "A further round of deregulation required."

He has set Access Canberra, his one-stop shop for government approvals, to the task of looking for a solution. Asked for clarification, his office said, "The Chief Minister doesn't want to see red tape placing an unnecessary burden on business. He'll await advice from Access Canberra, but on the face of it, this does seem like more regulation than is necessary for a business that's not a dedicated gambling venue."

Gambling and Racing Commission chief executive Greg Jones said he was putting together advice to Mr Barr "that would allow events such as these to be exempt from the provisions of the Lotteries Act".

Mr Parkinson welcomed the news, calling for the gambling commission to be given discretion.

He understood that bingo was caught in the gambling rules because it was a game of luck, whereas trivia was considered a game of skill so was exempt, even where there was an entry fee and prizes.

Clubs ACT chief executive Jeff House has described the classification of Tranny Bingo as gambling as ridiculous.

"People aren't turning up to gamble, they're not turning up because there are prizes, they're turning up to watch a performance," he said this week.