This exploratory study investigates the extent to which social context influences the frequency of laughter. In a within-subjects design, dyads of strangers played two simple laughter-inducing games in a cooperative and competitive setting, ostensibly to earn money individually and as a team. We examined the frequency of laughs produced in both settings. The analysis revealed that, the effects of cooperative versus competitive framing interacted with the game. Specifically, when playing a general knowledge quiz, participants tended to laugh more in the cooperative than in the competitive setting. However, the opposite was true when participants were asked to find a specific number of poker chips under time pressure. During this task participants laughed more in a competitive than in the cooperative setting. Further analyses revealed that familiarity with the task affected the amount of laughter differently for each of the two tasks. Playing the second round of the poker chips task was associated with a significant decreases in laughter frequency compared to the first round. This effect was less marked for the general knowledge quiz, where increased familiarity with the task in the second round led to more laughs in the cooperative, but not competitive setting. Together, the results highlight the flexibility of laughter as an interaction signal and illustrate the challenges of studying laughter in naturalistic settings.