The object of the game is to take a drink of water and hold that water in your mouth while innuendos are read aloud or played back from recordings. Considering how wet Hugh Jackman and his fellow competitor end up, it appears that they’re not that good at the game. Kylie can hardly hold it together over the course of the game, so just as well she didn’t get involved.
Jackman does manage to create an innuendo bingo line of his own during the segment. Hopefully it crops up during future segments. You can of course play along at home, but make sure you have some sort of protective covering for your laptop.