Nowra man Aaron Lord, 27, was refused bail in Wollongong Local Court on Thursday on accusations he set a friend on fire after a falling-out over a $10 bet, while Mount Warrigal resident Matthew John Anstey, 34, was released on strict conditional bail over allegations he stabbed his flatmate after a night of heavy drinking.

The court heard in both cases the men had spent the evening watching the State of Origin with friends - Lord at a home in Figtree and Anstey at the Lakeview Hotel - while consuming large amounts of alcohol.

In Lord's case, police allege he and the male victim had made a bet earlier in the night (the specifics of which were not revealed in court), however, when Lord went to cash in on the deal, the victim refused to pay up.

It is alleged Lord hit the man in the face with a golf club before using lighter fluid to set parts of his hair and chest on fire.

A female in the next room told police she heard a "whoof" of fire before hearing the victim scream out.

When she ran into the room, she said she saw the victim's hair on fire, the front of his shirt burned and the skin on his chest blistered.

It is alleged Lord downplayed the incident when confronted about it, saying: "It was only a bit of toilet paper".

The man was taken to hospital with burns to 9 per cent of his body.

Lord was arrested a few hours later at the Wests Leagues Club at Unanderra and charged with causing grievous bodily harm with intent and common assault.

Meantime, further south, police allege a case of heavy drinking and poor toilet habits led to Anstey's courtroom appearance on Thursday.

The court heard Anstey had consumed at least 13 beers over about seven hours and was heavily intoxicated when he took a wrong turn into the bathroom of his Mount Warrigal home instead of the toilet and proceeded to urinate down the drain on the floor.

When confronted by his housemate the pair got into a heated argument, during which police allege Anstey picked up a Leatherman knife from his bedroom.

Anstey allegedly told police the victim punched him in the face at one stage and moments later the pair noticed blood coming from the man's arm. They then saw blood seeping out of two more wounds to the man's thigh and stomach.

Anstey handed himself into police later that night, where they say he confessed to stabbing his mate but said he did not remember doing it.

Both cases will return to court at a later date.